Wednesday, September 30, 2015

Wajax Corp.

On my other blog I am today writing Streams of Income continue...

Sound bite for Twitter and StockTwits is: Price is cheap to reasonable with risk. The price testing gives a very mixed bag. I like to P/GP Ratio and P/B Ratio testing best, so I will go with these. The company certainly has some current problems. This makes it a little risky. See my spreadsheet on Wajax Corp. .

I do not own this stock of Wajax Corp. (TSX-WJX, OTC- WJXFF). TD Waterhouse put out a report on good dividend paying stocks to own in November 2011. This was a stock they named. I had not heard of it before, so I decided to investigate it.

This company has only been paying dividends from since 2004. The dividends have gone down as well as up. The company just recently changed their dividend payments from monthly to quarterly and reduced the dividends by some 58%. They have exposure to the oil and gas industry and we all know that is not going well at present.

Even with the cut in dividends, the dividend yield is still good at 4.56% based on a stock price of $21.94 and dividends of $1.00. This stock used to be an income trust and their dividends were very high in the past. However, they are unlikely to reach past highs again.

Shareholders were making a good return until the end of 2041, but this stock is down some 28% this year. The stock price actually peaked in 2012 at $52.61. The 5 year total return on this stock to the end of 2014 was 18.31% per year. Total return to date is a lot lower with the 5 year total return at -1.90% with 7.95% from dividends and a capital loss of 9.85%. The 10 years return is better, mostly because of dividends. The 10 year total return was 8.41% with 11.71% from dividends and a capital loss of 3.31%. In the future total return is going to reply more on capital gain than dividends.

Dividend Payout Ratios was rather high at 99.2% in 2014. It is expected to be at 83% in 2015, but then go back up to around 100% in 2016. The DPR for CFPS is better with the DPR for 2014 at 44% and for the 12 month period to the end of the second quarter at 58.4%.

The Return on Equity is fine as is the debt ratios, so I should move on to other things, like what is its relative price.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.00, 11.76 and 13.52. The 10 year corresponding ratios are lower at 6.57, 9.43 and 11.71. The 10 year ratios are low because this is a small cap company with the market often below 500M. The current P/E Ratio is 15.45 based on a stock price of $21.94 and 2015 EPS estimate of $1.42. Even though 15.45 is a not a very high P/E Ratio it is relatively high for this company. This stock price testing suggests that the stock is relatively expensive.

I get a Graham Price of $24.79. The 10 year low, median and high Price/Graham Price Ratios are 0.74, 1.03 and 1.32. The current P/GP Ratio is 0.89 based on a stock price of $21.94. This stock price testing suggests that the stock price is reasonable and below the relative median.

The 10 year Price/Book Value per Share Ratio is 2.54. The current P/B Ratio is 1.14 based on a stock price of $21.94 and BVPS of $19.24. The current P/B Ratio is some 55% lower than the 10 year P/B Ratio. This stock price testing suggests that the stock price is cheap.

The historical dividend yields are not good to use for dividend yield testing as the dividend yields were very high when this stock was an Income Trust company. Also, the dividends have recently been lowered. The 5 year dividend yield is 6.62% and the current dividend yield is 4.56% based on dividends of $1.00 and a stock price of $21.94.

It is interesting that the Price/Cash Flow per Share Ratio testing says that the stock is expensive and P/S Ratio testing says that the stock price is cheap. Current P/CF Ratio based on 12 month cash flow to the end of the second quarter is 10.83 compared to the 10 year median P/CF Ratio of 6.48. The current P/S Ratio is 0.27 compared to the 10 year median P/S Ratio of 0.46.

When I look at analysts' recommendations, I find Buy and Hold Recommendations. Most of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 month stock price consensus is $25.50. This implies a total return of 20.78% with 4.56% from dividends and 16.23% from capital gains.

The site of Financial Wisdom Works talks about recent ratings by analysts. Most ratings are a Hold. Doug Watt of Motley Fool talks about this company's recent dividend cut. The site Stock Chase talks about recent analysts' comments on this stock.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.

Wajax is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, Wajax has three distinct business divisions. The organization's customer base covers core sectors of the Canadian economy - mining, oil and gas, forestry, construction, manufacturing, industrial processing, transportation and utilities. Its web site is here Wajax Corp.

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. Follow me on Twitter or StockTwits.

Tuesday, September 29, 2015

MacDonald, Dettwiler & Associates 2

Sound bite for Twitter and StockTwits is: Stock price cheap, debt ratios low. On most testing this stock's price comes out as cheap. It is certainly below the median. The low debt ratios are a bit of a concern and would make the company vulnerable in bad times. See my spreadsheet on MacDonald, Dettwiler & Associates.

I do not own this stock of MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). 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.

The 5 year low, median and high median Price/Earnings per Share Ratios are 18.77, 23.39 and 28.00. The corresponding 10 year values are a bit lower at 16.39, 21.71 and 25.20. The current P/E Ratio is 15.55 based on a stock price of $73.86 and 2015 EPS estimate of $4.75. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $53.40. The 10 year low, median and high median Price/Graham Price Ratios are 1.61, 1.93 and 2.32. The current P/GP Ratio is 1.38 based on a stock price of $73.86. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 3.83. The current P/B Ratio is 2.77, a value some 28% lower than the 10 years median ratio. The current P/B Ratio is based on BVPS of $26.68 and a stock price of $73.86. This stock price testing suggests that the stock price is relatively cheap.

I only have a 4 year median dividend yield which is 1.93%. The current dividend yield is 2% based on a stock price of $73.86 and dividends of $1.48. This testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year P/S Ratio of 1.54. The current P/S Ratio is 1.23 based on Revenue estimate for 2015 of $2.178M ($60.18 per share) and a share price of $73.86. The current P/S Ratio is some 20% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold Recommendations. The most recommendations are a Hold. The consensus recommendation is a Buy. The 12 month consensus stock price is $96.80. This implies a total return of 33.06% with 31.06% from capital gains and 2% from dividends.

The last time CanTech reviewed this company, Richard Tse said that its competition was increasing and the stock was currently expensive. The site of the Market Business talks about recent analysts ratings on this stock. Joseph Solitro of Motley Fool thinks that this stock is a screaming buy.

This is the second of two parts. The first part was posted on Monday, September 28, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.

MacDonald, Dettwiler & Associates Ltd. is a global communications and information company providing operational solutions to commercial and government organizations worldwide. Its web site is here MacDonald, Dettwiler & Associates.

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. Follow me on Twitter or StockTwits.

Monday, September 28, 2015

MacDonald, Dettwiler & Associates

On my other blog I am today writing the about recommended Income Trust stocks continue...

Sound bite for Twitter and StockTwits is: Still an interesting tech stock. I will continue to follow this stock as I am hoping it will turn into the sort of company I like to invest in. See my spreadsheet on MacDonald, Dettwiler & Associates.

I do not own this stock of MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). 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.

This company only started to pay dividends in 2011. They increased the dividend by 30% in 2012, left it flat for two years then increased it by 13.8% in 2015. It is too early to tell if this will be a good dividend growth company or not. The current dividend is low and the dividend increases overall is moderate. The current dividend yield is 2% based on a stock price of $73.86. The dividends have increased by 10.3% per year over the past 4 years.

The 5 year median Dividend Payout Ratios are good. The 5 year DPR for EPS is 45.7% and for CFPS is 18.26%. The DPRs for EPS was quite high in 2014 at 99.2% because 2014 was not a good year. However, the DPR for EPS is expected to be around 31.2% in 2015.

Shareholders have done fine with total return at 10.03% and 8.04% per year over the past 5 and 10 years. The portion of this total return attributable to dividends is at 2.16% and 1.03% per year. The portion of this total return attributable to capital gain is at 7.87% and 7.01% per year. Before this year the total return was better because the stock price has fallen some 22% in 2015.

The outstanding shares have decreased by 2.3% and 0.8% per year over the past 5 and 10 years. Shares have grown due to ESPP and Share Issues. The shares have decreased due to Buy Backs. For Stock Option equivalents, the company buys shares on the open market. Growth over the past 5 and 10 years has been good for Revenue, non-existent for Earnings and good for cash flow.

The 5 and 10 years growth in Revenue is 16% and 10.8% per year. The 5 and 10 year growth in Revenue per share is 18.7% and 11.7% per year. Analysts expect growth for 2015 to be modest at around 3.8%. If you look at the 12 month period to the end of the second quarter to the 12 month period to the end of 2014, Revenue has grown by 1.2%.

EPS has declined by 13.3% and 0.2% per year over the past 5 and 10 years. However, 2014 was not a good year. If you look at EPS using 5 year running averages, growth is 4.6% and 10.8% per year over the past 5 and 10 years. Analysts expect better earnings for 2015 with growth at 262%. If you look at the 12 month period to the end of the second quarter to the 12 month period to the end of 2014, EPS has grown by 42.9%.

Cash Flow has grown at 7.9% and 10.6% per year over the past 5 and 10 years. CFPS has grown at 10.5% and 11.5% per year over the past 5 and 10 years. Analysts seem to expect good growth in cash flow for 2015, but if you look at the 12 month period to the end of the second quarter to the 12 month period to the end of 2014, cash flow has grown modestly.

Return on Equity has been below 10% twice over the past 5 years and three times over the past 10 years. The ROE for 2014 was low at 5.9%. The ROE on comprehensive income was even lower at just 0.3%. However, the 5 year median ROE for Net Income is 13.2%, while the 5 year median ROE for comprehensive income is 26.9%. The year 2014 was not a good year for this company.

Debt ratios have not been very good, especially lately. The Liquidity Ratio for 2014 was 0.79 and even adding in cash flow after dividends, the ratio is only 0.82. They improved with the second quarterly statements to 0.97 and with cash flow after dividends to 1.13. When this ratio is below 1.00, it means that the current assets cannot cover the current liabilities. This can leave a company vulnerable in bad times.

Even the Debt Ratio could be better. The Debt Ratio for 2014 is 1.37. For the second quarter it has improved to 1.43. I would prefer this ratio and the Liquidity ratio to be 1.50 or more. This is to provide a measure of safety. The Leverage and Debt/Equity Ratios are a little high at 3.71 and 2.71 for 2014.

This is the first of two parts. The second part will be posted on Tuesday, September 29, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.

MacDonald, Dettwiler & Associates Ltd. is a global communications and information company providing operational solutions to commercial and government organizations worldwide. Its web site is here MacDonald, Dettwiler & Associates.

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. Follow me on Twitter or StockTwits.

Friday, September 25, 2015

Telus Corp.

Sound bite for Twitter and StockTwits is: Stock price is reasonable to expensive. It is only in the dividend yield testing that this stock is showing up as cheap. I like this testing because it does no use estimates and it uses current information. However, the P/BV testing also does not use estimates and here the stock is showing as expensive. The stock has debt ratios vulnerability. See my spreadsheet on Telus Corp.

I do not own this stock of Telus Corp. (TSX-T, NYSE-TU). I started to follow this stock because of a list of stock John Sartz talked about in 2008. At the Toronto Money Shows in 2009 and 2010 Aaron Dunn from KeyStone Financial Publishing Corp talked about having recommended this stock. Aaron Dunn says he likes companies with resilient business models, which are profitable and are growing their earnings. He also like companies with strong management teams, health balance sheets and compelling valuations. They look at the P/E and the Price/Cash Flow ratios. Telus Corp (TSX-T) was one of three stocks he recommended in 2009.

Dividend is moderate and the dividend increases are moderate to good. The current dividend is 3.96% based on a stock price of $42.45 and dividends of $1.68. Dividends have grown by 9.3% and 17.6% per year over the past 5 and 10 years. Dividend growth tends to fluctuation with how well a company is doing. This often depends on how well the economy is doing.

Dividend Payout Ratios are good. The DPR for 2014 for EPS was 64.1% and for CFPS was 26%. The 5 year median DPR for EPS was 60.6% and for CFPS was 24.90%. DPR for these values for 2015 are expected to be similar.

Shareholders have done well with the 5 and 10 year total return at 17.85% and 9.24% per year. The portion of this return attributed to dividends is 4.55% and 3.34% per year. The portion of this return attributed to capital gain is 13.30% and 5.90% per year.

Outstanding shares have decreased by 0.8% and 1.6% per year over the past 5 and 10 years. Revenue growth has been moderate. EPS growth has been good and Cash Flow growth has been moderate.

Revenue has grown at 4.6% and 4.7% per year over the past 5 and 10 years. Revenue per share has grown at 5.4% and 6.4% per year over the past 5 and 10 years. Revenue is expected to growth about the same in 2015.

EPS has grown by 8% and 11.5% per year over the past 5 and 10 years. Analysts expect EPS to grow about 9% in 2015. Cash Flow has grown by 6.2% and 3.4% per year over the past 5 and 10 years. Analysts expect Cash Flow to grow around 6% in 2015.

Debt Ratios could be better. The Liquidity Ratio for 2014 is just 0.62. That means that current assets cannot cover current liabilities. If you had added in cash flow after dividends, this ratio becomes 1.34. I prefer this ratio to be 1.50. Also, this points out that the company depends on cash flow to fund current liabilities. This is vulnerability.

The Debt Ratio is 1.47. I prefer this also to be 1.50. The reason I like the ratios to be 1.50 is to give a margin of safety. Leverage and Debt/Equity Ratios are a little high at 3.11 and 2.11.

The Return on Equity has been above 10% each year for the past 10 years. The ROE for 2014 is 19.1% and the 5 year median is 16.2%. The ROE on comprehensive income for 2014 is lower at 13.2% and its 5 year median is 13.2%. When the ROE on comprehensive income is lower than for the net income, it suggests that the earnings may not be of good quality or as good as they appear.

There is not much in the way of insider ownership. However one officer owns shares worth $6.2M and the chairman owns shares worth $1.6M. But both of these only add up to around 0.03% of the outstanding shares. In 2014 the outstanding shares were increased due to stock options by 1.4M shares. These stock options represent some 0.24% of the outstanding shares. These numbers of shares were worth $60.6M at the end of 2014.

The 5 year low, median and high median Price/Earnings per Share Ratios are 13.87, 15.12 and 16.36. The corresponding 10 year values are close at 13.66, 15.38 and 16.94. The current P/E Ratio is 16.85 based on a stock price of $42.45 and 2015 EPS estimate of $2.52. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $26.48. The 10 year low, median and high median Price/Graham Price Ratios are 1.17, 1.36 and 1.49. The current P/GP Ratio is 1.60. 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 2.41. The current P/BV Ratio is 3.43 based on a stock price of $42.45 and BVPS of $12.37. The current P/B Ratio is some 42.6% higher than the 10 year median ratio. The current P/GP Ratio is 1.60. This stock price testing suggests that the stock price is relatively expensive. A P/B Ratio of 3.43 is a little high. For example, 70% of the stocks I follow have a P/B Ratio of 2.12 or lower.

The current dividend is 3.96% based on a stock price $42.45. The 5 year median dividend yield is 3.92%. The current dividend yield is some 1% higher than the current dividend yield. This stock price testing suggests that the stock price is relatively reasonable and around the relative median.

The historical median dividend yield is 3.91%. This is some 1.2% lower than the current dividend yield of 3.96%. This stock price testing suggests that the stock price is relatively reasonable and around the relative median.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most recommendations are a Buy with Holds a close second. The consensus recommendation would be a Buy. The 12 month consensus stock price is $45.90. This implies a total return of 12.08% with 3.96% from dividends and 8.13% from capital gains.

Motley Fool's Andrew Walker has identified Telus as a top dividend growth stock. There is an interesting article in Business Vancouver about Telus issuing a Green Bond to bankroll their B.C. Tower.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.

Telus is a national telecommunications company in Canada. Telus provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video. Its web site is here Telus.

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. Follow me on Twitter or StockTwits.

Thursday, September 24, 2015

Just Energy Group Inc.

Sound bite for Twitter and StockTwits is: Neg. BV, would not buy. On some comparative basis the stock price is relatively reasonable, but this stock has a Negative Book Value. I also do not like the debt ratios. Insiders seem to like it, but maybe they are the only ones making money. See my spreadsheet on Just Energy Group Inc.

I do not own this stock of Just Energy Group Inc. (TSX-JE, NYSE-JE). I started to follow this is July 2010. It was one of the high yield income trusts that people were talking about, so I decided to check it out.

This stock used to be an income trust with distributions paid monthly. Current the dividends are paid quarterly and they have recently dropped some 60%. Dividends were flat from 2010 to 2014 before they were decreased. The company was a dividend growth stock until the legislation was changed in regards to income trust companies.

Analysts expect that the Dividend Payout Ratios will be good for the current financial year ending in March 2016. As far as I can see the company has not yet said if they will raise their dividend again.

Shareholders have not done well lately with the stock price declining every year since 2012 expect for this year. Shares are up by 28% so far this year. The total return over the past 5 and 10 years is a loss of 4.84% and a gain of 0.16% per year. The portion of this total return due to capital loss is 12.27% and 8.38% per year. The portion of this total return due to dividend is at 7.43% and 8.54% per year.

Outstanding shares have increased by 1.8% and 3.3% per year over the past 5 and 10 years. Shares have increased due to DRIP, Stock Options and Share Issued. Shares have decreased due to Buy Backs. Revenue growth has been good. Earnings growth has been non-existent as has growth in FFO and AFFO. Growth in Cash Flow has been non-existent to moderate.

Revenue has grown at 11.1% and 15.5% per year over the past 5 and 10 years. Revenue per Shares has grown at 9.2% and 11.8% per year over the past 5 and 10 years. Analysts expect growth in Revenue of around 7% this fiscal year.

There was a large earnings loss for the fiscal year end in March 2015. Analysts expect EPS of around $1.11 in 2016. The Funds from Operations have declined by 12.9% and 0.4% per year over the past 5 and 10 years. AFFO is worse with a decline of 17.4% per year over the past 5 years. However, analysts expect both of these measures to growth nicely in the 2016 fiscal years. FFO is expected to be up by 18% in 2016. If you compare the 12 months to the end of the first quarter of 2016 to the 12 months to the end of the 2015 fiscal year, FFO is up by 13%.

Cash Flow is down by 5.4% and up by 6.2% per year over the past 5 and 10 years. CFPS is down by 7.1% and up by 2.7% per year over the past 5 and 10 years. Analysts expect good growth in cash flow for this stock for the 2016 fiscal year and cash flow is up for the first quarter of 2016.

The one thing I do have concerns over the debt ratios. The Liquidity Ratio is just 0.91 for the 2015 fiscal year. Even if you add in cash flow after dividends it is still just 0.92. This means that current assets cannot cover current liabilities. The Debt Ratio is also low at 0.67 in fiscal year 2015. This means that assets cannot cover liabilities. The company has a negative book value. This makes the company vulnerable in bad times.

The only insiders with much in the way of stock are the Chairman with 4.1% of the stock worth around $46.5M and two 10% (at least) stock holders. One owner has 12.5% of the shares worth around $142.8M and the other owns 16.6% of the shares worth around $189.2M.

Another thing to point out is that outstanding shares were increased by 2.2M shares for the 2015 fiscal year for stock options and this is some 1.5% of the outstanding shares. This is relatively a lot. You would expect this percentage to be 0.50% or less. The median share increase for stock options for the stock I follow is 0.20% and 70% of the companies raised shares by 0.50% or less. The corresponding values for 2014 and 2013 were shares increasing by 0.38% and 0.17%.

I do not think that using the Price/Earnings per Share Ratio for stock price testing would be valid. For example, the 5 year median P/E Ratio was 2.62. I have proper values for Price/Funds from Operations Ratios. The 5 year low, median and high median P/FFO Ratios are 7.69, 9.83 and 11.83. The corresponding 10 year values are similar at 8.02, 10.01 and 12.03. The current P/FFO Ratio is 8.64 based on 2016 FFO estimate of $0.90 and a stock price of $7.78. This stock price testing suggests that the stock price is relatively reasonable and relatively below the median.

I cannot calculate a Graham Price and the Book Value is negative so I cannot use the Price/Graham Price Ratios or the Price/Book Value per Share Ratio to judge the stock price. This is not a good situation.

The 10 year Price/Cash Flow per Share Ratio is 9.81 and the current P/CF Ratio is 9.60 a value some 2% lower. The current P/CF Ratio is based on 2016 CFPS estimate of $0.81 and a stock price of $7.78. This stock price testing suggests that the stock price is relatively reasonable and relatively below the median.

When I look at analysts' recommendations, I see Buy and Hold Recommendations. Most recommendations are a Hold and the consensus is a Hold recommendations. The 12 month consensus stock price is $6.75. This implies a negative total return of 6.81% with a capital loss of 13.24% and dividends of 6.43%. This is assuming a current stock price of $7.78.

Nelson Smith of Motley Fool does not like this company. The site of Dakota Financial News talks about recent ratings for this company and recent insider buying.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.

Just Energy's business involves the sale of natural gas and/or electricity to residential and commercial customers under long-term fixed-price and price-protected contracts. Just Energy derives its margin or gross profit from the difference between the fixed price at which it is able to sell the commodities to its customers and the fixed price at which it purchases the associated volumes from its suppliers. The company also offers "green" products through its Just Green program. Through its subsidiary Terra Grain Fuels, the Fund produces and sells wheat-based ethanol. Its web site is here Just Energy.

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. Follow me on Twitter or StockTwits.

Wednesday, September 23, 2015

Smart REIT 2

On my other blog I am today writing the second part of Starting Out Investing continue...

Sound bite for Twitter and StockTwits is: Stock price is cheap to reasonable. The stock is only cheap when viewing it via the P/B Ratio. Other testing shows that the stock price is relatively reasonable and above the relative median. See my spreadsheet on Smart REIT.

I do not own this stock of Smart REIT (TSX-SRU.UN, OTC-CWYUF). Once you have 5 or 6 stocks, you might want to consider a REIT for diversification. REITs are an easy way to investment in real estate. I am therefore following a few REIT stocks and in 2009 I decided to look at a few on the Dividend Achiever's List. Unfortunately, this stock is no longer on the Dividend Achiever's List.

This stock recently changed its name from Calloway Real Estate Income Trust (TSX-CWT.UN) to Smart REIT (SRU.UN). The OTC symbol seems to still be CWYUF.

When I look at insider trading, I find no insider selling and no insider buying. In 2014 the outstanding shares were increased by 481,000 shares or by 0.35%. The book value of these shares was $12.4M and this number of shares was worth 13.1M at the end of 2014.

The chairman of this company has trust units worth around $400M; Limited Partnership Units worth around $1,307M and Special Voting Units worth around $731.8M. What he owns is around 61.6% of the market cap.

I get 5 year low, median and high median Price/Earnings per Share Ratios of 12.59, 13.56 and 14.54. The 10 year P/E Ratios are a lot higher at 23.54, 27.90 and 35.42. This is because of the large variation between P/E Ratios year over year. This current P/E Ratio is 13.94 based on a stock price of $29.13 and 2015 EPS estimate of $2.09. Because of the big variation in P/E Ratios I do not think this is good measurement for this company. For example, the P/E on closing price was 213.74 in 2010 and was 4.09 in 2012.

A better measure might be Price/Funds from Operations Ratios. The 5 year low, median and high median P/FFO Ratios are 13.42, 14.73 and 16.34. The corresponding 10 year values are 12.76, 14.69 and 16.24. The current P/FFO Ratio is 14.89 based on FFO estimates for 2015 of $2.05 and a stock price of $29.13. This stock price testing suggests that the stock price is relatively reasonable and just north of the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.47. The current P/B Ratio is 1.09 based on a stock price of $29.13 and BVPS of $26.61. The current P/B Ratio is some 26% below the 10 year median P/B Ratio. This stock price testing suggests that the stock price is relatively cheap.

The 5 year median dividend yield is 5.93% and the current dividend yield is 5.50% which is some 7.3% lower. The current dividend yield is based on dividends of $1.60 and a stock price of $29.13. This stock price testing suggests that the stock price is relatively reasonable, but above the relative median.

If you look at the historical median dividend yields of 6.17%, the current dividend yield of 5.50% is 10.9% lower. Again, this stock price testing suggests that the stock price is relatively reasonable, but above the relative median. There is, of course, a problem with looking at dividend yields for testing because dividends have been flat 2008 and 2014 some 6 years.

If you look at P/CF Ratios, the 10 year median is 15.92 and the current one would be 16.55 based on CF of $239.4M based on the cash flow for the 12 months to the end of the second quarter. The current P/CF is some 3.9% higher than the 10 year median P/CF Ratio. This stock price testing suggests that the stock price is relatively reasonable, but above the relative median.

When I look at the analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendations would be a Buy. The 12 months stock price consensus is $33.20. This implies a total return of 19.47% with 5.50% from dividends and 13.97% from capital gains.

In this Motley Fool article by Joseph Solitro, he says that this REIT is of good quality. This Stockhouse article talks about Calloway REIT acquiring Smart Centres platform from Mitchell Goldhar. Mitchell Goldhar is the chairman of Smart REIT.

This is the second of two parts. The first part was posted on Tuesday, September 22, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.

Smart REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Smart REIT.

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. Follow me on Twitter or StockTwits.

Tuesday, September 22, 2015

High Liner Foods 2

Sorry I forgot to post this yesterday.

On my other blog I am today writing about an article about real investors continue...

Sound bite for Twitter and StockTwits is: Price is reasonable to cheap. The stock price testing using dividend yield says the stock price is cheap. I like this test because it uses current values and no estimates. It is interesting that using P/B Ratio testing, stock comes out expensive. See my spreadsheet on High Liner Foods.

I do not own this stock of High Liner Foods (TSX-HLF, OTC-HLNFF). This is a stock liked by the Investment Reporter and is considered to be of average risk. The MPL Communication's site is here. Ryan Irvine of Keystone also likes this company.

Most analysts are looking at the Adjusted EPS this company puts out. The 5 year low, median and high median Price/Adjusted Earnings per Share Ratios are 7.58, 9.59 and 12.72. The 10 year corresponding P/AEPS Ratios are 8.93, 11.56 and 14.75. The current P/AEPS Ratio is 10.05 based on AEPS for 2015 of $1.77 CDN$ (or $1.33 US$) and a stock price of $17.75. This stock price testing suggests that the stock price is relatively reasonable and around the relative median.

I get a Graham Price of $15.71. The 10 year P/GP Ratios are 1.00, 1.13 and 1.24. The current P/GP Ratio is 1.13 based on a stock price of $17.75. This stock price testing suggests that the stock price is relatively reasonable and around the relative median.

I get a Price/Book Value per Share Ratio of 1.38. The current P/B Ratio is 2.04 based on a stock price of $17.75 and BVPS of $8.70. The current P/B Ratio is some 48% above the 10 years median. This stock price testing suggests that the stock price is relatively expensive. Generally speaking a P/B Ratio of 1.50 is a good ratio when buying a stock. The current P/B Ratio is some 36% above this value also.

The 5 year median dividend yield is 1.82% and the current dividend yield at 2.70% is some 48% higher. This current dividend yield is based on dividends of $0.48 and a stock price of $17.75. The historical average and historical median dividend yields are 2.03% and 2.11%. These are values at 19% and 28% above the current dividend yield of 2.70%. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations, I find Buy and Hold Recommendations. The consensus would be a Buy. The 12 month stock price consensus is $23.70. This implies a total return of $36.23% with 33.52% from capital gains and 2.70% from dividends.

There is an interesting analysis of this company at Seeking Alpha. Unfortunately, you have to register with Seeking Alpha to get the whole report. On the other hand Seeking Alpha often has interesting information on Canadian Stocks. On the site Dakota Financial News there is information about what analysts have recently been saying about this stock. On the web site of WKRB there is talk about recent insider buying. There is an interesting at Global News about this company. However, this article says that the company does most of its business in Canada, but according to the Revenue by area the company reports, they have more than twice the revenue in US than in Canada.

This is the second of two parts. The first part was posted on Friday, September 18, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.

High Liner Foods is the leading North American processor and marketer of value-added frozen seafood. Their retail branded products are sold throughout the United States, Canada and Mexico and are available in most grocery and club stores. They also sell their branded products to restaurants and institutions and they are the major supplier of private label value-added frozen seafood products to North American food retailers and food service distributors. Its web site is here High Liner Foods.

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. Follow me on Twitter or StockTwits.

Smart REIT

Sound bite for Twitter and StockTwits is: Dividend growth REIT. Liq Ratio low. I do not like companies where the Liquidity Ratio is so low. It presents problems of vulnerability in bad times and bad times always roll around. This company's Liquidity Ratio is very low. See my spreadsheet on Smart REIT.

I do not own this stock of Smart REIT (TSX-SRU.UN, OTC-CWYUF). Once you have 5 or 6 stocks, you might want to consider a REIT for diversification. REITs are an easy way to investment in real estate. I am therefore following a few REIT stocks and in 2009 I decided to look at a few on the Dividend Achiever's List. Unfortunately, this stock is no longer on the Dividend Achiever's List.

This stock recently changed its name from Calloway Real Estate Income Trust (TSX-CWT.UN) to Smart REIT (SRU.UN). The OTC symbol seems to still be CWYUF. Not all sites have updated to the new name and symbol. From most you can get the new name of Smart REIT but some are still using the old symbol of CTW.UN. Do not forget that some US sites do not use the UN extension, but usually use something like SRU_U.

Because this is an REIT, dividend yields are quite good, but dividend increases are low. Generally REIT should have dividend increase at or just above inflation. Dividends were flat on this stock from 2008 to 2014. In 2014 dividends were increased by 3.4%. The dividend growth on this stock was 0.1% and 2.5% per year over the past 5 and 10 years.

The problem is that the company had Dividend Payout Ratios that were too high. I am not just talking about DPR compared to EPS and CFPS, but also compared to FFO and AFFO. For FFO and AFFO DPR were over 100% in 2010. All the DPRs for 2014 were moderated. DPR for EPS was 80.4%, for CFPS was 88.2%, for FFO was 79.6% and for AFFO was $83.8%. All these ratios are expected to be fine in 2015 also.

Shareholders have done well lately with total returns over the past 5 and 10 years at 10.65% and 8.04% per year. The portion of this total return attributable to dividends or distributions is 6.15% and 5.98%, respectively. The portion of this total return attributable to capital gains is 4.50% and 2.07%, respectively.

Taxes on distributions lately have been under Other Income, Capital Gains and Return of Capital. In 2014 Other Income was 61.7% of the distribution, Capital Gains was 3% of the distribution and Return of Capital was 35.3% of the distribution.

The outstanding shares have been increasing so we should be more interested in per share values. The outstanding shares have increased due to Stock Options, DRIP and Convertible Debentures. Revenue growth is non-existent to good. AFFO and FFO growth is low to moderate. EPS growth is good. Cash Flow growth is low to good.

Revenue growth is 5.7% and 21.3% per year over the past 5 and 10 years. Revenue per Share is down by 0.8% and up by 5.4% per year over the past 5 and 10 years. Analysts expect good growth in revenue for this company this year and next year.

FFO has grown by 3.2% and 3.9% per year over the past 5 and 10 years. However FFO has tended to fluctuate and if you look at 5 year running averages, the growth is lower. The growth in FFO using 5 year running averages over the past 5 years, growth is just 1.4% per year. AFFO has grown at 3.4% and 3.7% per year over the past 5 and 10 years. AFFO has also fluctuated and the 5 year growth using 5 year running average is just 1.4% per year. Analysts expect low to moderate growth here in 2015.

EPS growth is much better than FFO and AFFO growth. EPS has grown at 51.8% and 14.4% per year over the past 5 and 10 years. EPS has also fluctuated, but using 5 year running averages growth is similar at 40.9% and 13.9% per year over the past 5 and 10 years. Analysts expect moderate growth here in 2015. If you look at the 12 month period to the end of the second quarter to the 12 month period to the end of 2014, EPS has grown by 5%.

Cash Flow is up by 8.5% and 20.9% per year over the past 5 and 10 years. CFPS is up by 1.9% and 5.1% per year over the past 5 and 10 years. If you look at the 12 month period to the end of the second quarter to the 12 month period to the end of 2014, Cash Flow has grown by 6.7%.

The Liquidity Ratio is very low. It is currently at just 0.27. Generally with REITs if you add back in current portion of the long term debt and cash flow after dividends, you get a ratio over 1.00. A ratio of 1.00 is current assets equal current liabilities. For this company the ratio is 0.75. Having such a low ratio leaves a company vulnerable in bad times.

The other debt ratios are fine. The Debt Ratio at 2.22 is quite good. The Leverage and Debt/Equity Ratios are also quite good at 1.82 and 0.82.

The Return on Equity is also quite low with the ROE for 2014 at 6.9% and the 5 year median at 8.2%. Net Income and Comprehensive Income is the same.

This is the first of two parts. The second part will be posted on Wednesday, September 23, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.

Smart REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Smart REIT.

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. Follow me on Twitter or StockTwits.

Friday, September 18, 2015

High Liner Foods

Sound bite for Twitter and StockTwits is: Dividend growth Consumer stock. This stock has grown quite well and has provided dividend growth since 2008. See my spreadsheet on High Liner Foods.

I do not own this stock of High Liner Foods (TSX-HLF, OTC-HLNFF). This is a stock liked by the Investment Reporter and is considered to be of average risk. The MPL Communication’s site is here. Ryan Irvine of Keystone also likes this company.

The dividend yield is moderate with generally good growth, especially in the last 5 years. Dividends were started in 2004 and have grown since 2008. The current dividend is 2.70% based on a Dividend of $0.48 and a stock price of $17.75. The 5 year median dividend yield is lower at 1.88%. Dividends have grown by 24.9% and 15.2% per year over the past 5 and 10 years. The most recent dividend increase was in 2015 and the increase was for 14.3%.

The Dividend Payout Ratios are good. The DPR for 2014 was 36.4% for EPS and 14.2% for CFPS. The 5 year median DPR was 32.8% for EPS and 12.91% for CFPS. The DPR the last 12 months to the end of the second quarter is around 36.9% for DPR and 19.7% for CFPS

If you had bought this stock 5, 10 or 15 years ago, your current dividend yield on your original purchase price would be 7.3%, 9.6% or 22.6%. If you had bought this stock 5, 10 or 15 years ago you would have had dividends that paid 25.7%, 46.2% or 119.5% of the cost of your stock.

Shareholders have done well on the past 5 and 10 years with total return at 19.70% and 16.88% per year. The portion of this total return from dividends is at 2.79% and 2.3% per year. The portion of this total return from capital gain is at 16.92% and 14.58% per year.

Outstanding shares have decreased by 3.5% and grown by 3.7% per year over the past 5 and 10 years. Shares have increased due to Stock Options, Share Issues and Debenture Conversion. Shares have decreased due to Buy Backs. There has been good growth in Revenue, Earnings and Cash Flow over the past 5 and 10 years. Also note that 3 years ago in 2012 this company changed the reporting currency to US$ from CDN$. My calculations are in CDN$.

Revenue has grown by 14.2% and 16.3% per year over the past 5 and 10 years. Revenue per Share has grown at 18.4% and 12.2% per year over the past 5 and 10 years. Revenue is expected to grow very modestly in US$ in 2015. The Revenue will grow well in CDN$ terms (because of changing exchange rates). Growth in US$ is at 0.2% and in CDN$ is 14.6%.

EPS growth is at 16% and 13.2% per year over the past 5 and 10 years. However, this company also puts out an Adjusted EPS which has grown at 20.3% and 11.4% per year over the past 5 and 10 years. Analysts are giving estimates in Adjusted EPS. In US$ Adjusted EPS is expected to increase by 7.3% in US$ and 22.7% in CDN$. If you compare the 12 month period to the end of the second quarter and to the end of 2014, Adjusted EPS has declined by 2.4% in US$ and increased by 11.7% in CDN$.

Cash Flow has grown by 25.05% and 21.9% per year over the past 5 and 10 years. CFPS has grown at 29.6% and 17.6% per year over the past 5 and 10 years. Analysts expect growth of 146% in US$ and 181% in CDN$ in 2015. If you compare the 12 month period to the end of the second quarter and to the end of 2014, Cash Flow has increased by 24.2% in US$ and increased by 42.1% in CDN$.

I will need a few more years of this stock reporting in US$ to get a fix on how well this stock has done in US$ terms as regards to growth.

The Return on Equity has been above 10% four out of the last 5 years. The ROE for 2014 is 15.4% and the 5 year median is 13.8%. The ROE on comprehensive income has been lower with an ROE for 2014 at 10.8% and the 5 year median at 12%. The difference seems to be mostly in currency exchange and hedges against currency exchange.

Most of the debt ratios are good, but the Leverage and Debt/Equity Ratios are a bit high. The Liquidity Ratio is 2.27 in 2014 and the Debt Ratio is 1.39. The Leverage and Debt/Equity Ratios are 3.58 and 2.58.

This is the first of two parts. The second part will be posted on Monday, September 21, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.

High Liner Foods is the leading North American processor and marketer of value-added frozen seafood. Their retail branded products are sold throughout the United States, Canada and Mexico and are available in most grocery and club stores. They also sell their branded products to restaurants and institutions and they are the major supplier of private label value-added frozen seafood products to North American food retailers and food service distributors. Its web site is here High Liner Foods.

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. Follow me on Twitter or StockTwits.

Thursday, September 17, 2015

ATCO Ltd.

Sound bite for Twitter and StockTwits is: div growth, reasonable to cheap. This stock looks quite cheap when comparing historical dividend yield to current dividend yield. I like using dividend yield as values are current and not estimates. See my spreadsheet on ATCO Ltd.

I do not own this stock of ATCO Ltd. (TSX-ACO.X, OTC- ACLLF). I started to look at this stock in 2009 because it was a dividend paying stock that was on everyone's list. At that time this stock is on the Dividend Achievers list, the Dividend Aristocrats list and also was on Mike Higgs' list.

This stock has a moderate dividend and moderate dividend increases. The current dividend is 2.62% based on a stock price of $37.83. The 5 year median dividend is a lot lower at 1.88%. The dividends have grown at 11.5% and 9.4% per year over the past 5 and 10 years. If you had held this stock for 10 or 15 years, you would now be making around 5.6% and 10.6% yield on your original investment.

The total return over the past 5 and 10 years is at 7.36% and 8.87% per year. The portion of this total return attributable to dividends is 2.31% and 2.23% per year. The portion of this total return attributable to capital gain is 5.05% and 6.63% per year.

This stock has lost some 20% so far in 2015. For the 5 and 10 years to the end of 2014 total return was higher at 17.75% and 16.52% per year with 2.15% and 2.19% per year from dividends and 15.60% and 12.54% per year from capital gains.

Outstanding shares have not changes much over the past 5 and 10 years with shares declining by 0.6% and 1.2% per year over the past 5 and 10 years. Shares have increased due to stock options and decreased due to Buy Backs. There has been good growth in earnings and cash flow and moderate growth in revenue.

Revenue has grown at 7.9% and 3.1% per year over the past 5 and 10 years. Revenue per Share has grown at 8.2% and 3.5% per year over the past 5 and 10 years. Analysts expect Revenue to decline slightly in 2015.

EPS has grown at 8.3% and 10.7% per year over the past 5 and 10 years. Analysts expected EPS to drop significantly in 2015 by around 35% to $2.36 from 2014 EPS of $3.64. If you compare the 12 month period to the end of the second quarter to the 12 month period to the end of 2014, EPS is down by 21.7%.

Cash flow has increased by 10.6% and 9.87% per year over the past 5 and 10 years. Cash Flow per Share has increased by 10.9% and 10.3% per year over the past 5 and 10 years. Analysts expect CFPS to drop significantly in 2015 by around 30% from around $14.60 to around $10.20. If you compare the 12 month period to the end of the second quarter to the 12 month period to the end of 2014, Cash Flow is down by 3.5%.

Debt Ratios are fine and Return on Equity has been higher than 10 % per year every year for the past 10 years. However, ROE for Comprehensive Income tends to be lower than ROE on Net Income. This suggests that earnings maybe not be as good as they seem. For example ROE on Net Income for 2014 was 13.4% and the ROE on Comprehensive Income for 2014 was 11.7%. The ROE on Comprehensive Income is still good, but it is not as good as that for Net Income.

The 5 year low, median and high median Price/Earnings per Share Ratios are 9.81, 10.75 and 12.46. The 10 year corresponding values are similar at 9.91, 11.53 and 13.10. The current P/E Ratio is 16.03 based on a stock price of $37.83 and 2015 EPS estimate of $2.36. This stock price testing suggests that the stock is relatively expensive.

I get a Graham Price of $38.74 and the 10 year low, median and high median Price/Graham Price Ratios are 0.80, 0.94 and 1.07. The current P/GP Ratio is 0.98 based on a stock price of $37.83. This stock price testing suggests that the stock price is relatively reasonable but above the relative median.

The10 year median Price/Book Value per Share Ratio is 1.65. The current P/B Ratio is 1.34 based on a stock price of $37.83 and BVPS of $28.27. The current P/B Ratio is some 19% lower than the 10 year P/B Ratio median. This stock price testing suggests that the stock price is relatively reasonable and below the relative median. If the current P/B Ratio was 20% lower, then the stock would be considered to be cheap.

The 5 year median dividend yield is 1.88% and the current dividend yield at 2.62% is some 39% higher. The current dividend yield is based on a stock price of $37.82 and dividends of $0.99. You get quite similar results looking at historical average and historical median dividend yields of 2.26% and 2.06% which are some 16% and 27% below the current dividend yield. This stock price testing suggests that the stock is relatively reasonable to cheap and certainly below the relative median.

When I look at analysts' recommendations, I find Buy, Hold and Underperform recommendations. The consensus would be a Hold as most of the recommendations are a Hold. The 12 month stock price consensus is $47.30. This implies a total return of 27.63% with 2.62% from dividends and 25.03% from capital gains. This is a rather high total return and does not match a Hold recommendation.

There is a report from Dakota Financial News on recent analysts ratings. The blogger Dividend Beginner has a nice write up about this company.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.

ATCO LTD. is a management holding company with operating subsidiaries in electric and natural gas utility operations, independent power operations, production, storage, processing, gathering, delivery of natural gas, technical facilities management for the industrial, defense and transportation sectors, the manufacture, sale and leasing of industrial shelters and industrial noise abatement technologies. ATCO has just over 50% stake in Canadian Utilities Ltd. Its web site is here ATCO Ltd.

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. Follow me on Twitter or StockTwits.

Wednesday, September 16, 2015

Exchange Income Corp.

On my other blog I am today writing about WorldCom Fraud continue...

Sound bite for Twitter and StockTwits is: Price probably reasonable. I am not much interested in this stock for two reasons. First I owned a similar stock call ONEX which was into making money by buying and selling companies. I did not make much money here. Also, I do not like the aviation sector as I do not think that aviation can make money in the longer term. See my spreadsheet on Exchange Income Corp.

I do not own this stock of Exchange Income Corp. (TSX-EIF, OTC-EIFZF). One of my blogger readers suggested this stock as one to review. There was an interesting article about this stock in the G&M in May 2013. This article suggested that the company had a hefty yield with an acquisition tailwind.

This is not a normal stock company. It is more like a hedge fund. Revenue is not much important as this can change when the company buys and sell other companies. What I think is important over the long term is what earnings, cash flow and distributions this company can produce for its shareholders.

The dividend yield is quite high. The dividend growth used to be good but has not been good for a while until this year. The current dividend yield is 7.89% based on a stock price of $24.35. The 5 and 10 year dividend growth is at 1.6% and 12.1% per year. The most recent dividend increase was in 2015 and it was for 10.3%.

As you can see the dividend growth over the past 5 years was very low. This is probably because the Dividend Payout Ratios was too high. The DPR for EPS for 2014 was 455%. The 5 year median DPR is 160%. This is expected to drop to 109% this year and around 89% in 2016.

This company also gives out a Distributable Cash value based on Free Cash Flow and the DPR on this basis was 132% in 2013 and 106% in 2014. However if you look at the FCF per share for the 12 month period to the end of the second quarter the DPR is 81%.

Shareholders have done well over the past 5 and 10 years with total return at 15.21% and 19.50% per year. The portion of this total return attributable to dividends is 8.44% and 10.72%. The portion of this total return attributable to capital gains is 6.77% and 8.78%.

The outstanding shares have increased by 15.9% and 33.5% per year over the past 5 and 10 years. Revenue growth is moderate to good. Cash Flow growth is good. For Distributable Cash growth is nonexistent to low and for Earnings growth is non-existent.

Revenue has grown by 20.8% and 39.3% per year over the past 5 and 10 years. Revenue per share has grown at 4.2% and 4.4% per year over the past 5 and 10 years. Revenue is not a good indicator of growth as revenue can change a lot as this company buys and sells companies.

The problems are Distributable Cash and EPS. DC is down by 10.8% and up by 2.6% per year over the past 5 and 10 years. EPS is down by 23.3% and 7.4% per year over the past 5 and 10 years. However, both these items have had good growth over the 12 month period to the end of the second quarter compared to the 12 month period to the end of 2014. On this basis DC has grown 49% and EPS by 113%.

Cash Flow has grown by 28% and 9.4% per year over the past 5 and 10 years. CFPS has grown by 10.5% and 8.1% per year over the past 5 and 10 years. Analysts expect CFPS to grow by 16% in 2015. However if you compare the 12 month period to the end of the second quarter and to the 12 month period to the end of 2014, CF is down by 24%.

The 5 year low, median and high median Price/Earnings per Share Ratios are 18.13, 20.58 and 23.03. The corresponding 10 year values are lower at 13.66, 16.59 and 19.51. The current P/E Ratio is 14.76 based on a stock price of $24.35 and 2015 EPS estimate of $1.65. This stock price testing suggests that the stock price is relatively reasonable and below the relative median.

I get a Graham Price of $22.48. The 10 year low, median and high median Price/Graham Price Ratios are 0.89, 1.08 and 1.26. The current P/GP Ratio is 1.08 based on a stock price of $24.35. This stock price testing suggests that the stock price is relatively reasonable and at the relative median.

The 10 year Price/Book Value per Share Ratio is 1.55. The current P/B Ratio is 1.79 based on BVPS of $4.25 and a stock price of $24.35. The current P/B Ratio is some 15.4% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable but above the relative median.

The 5 year median dividend yield is 7.43% and the current dividend yield is 7.89% based on dividends of $1.92 and a stock price of $24.35. This stock price testing suggests that the stock price is relatively reasonable and below the relative median. However, the 10 year median dividend yield is 9.71% and this is 19% higher than the current dividend yield and suggests that the stock price is getting relatively expensive.

When I look at analysts' recommendations they are all over the place. Recommendations are Strong Buy, Buy, Hold and Underperform. The consensus would be a Buy as most of the recommendations are a Buy. The 12 month stock price consensus is $30.70. This implies a total return of 33.95% with 26.08% from capital gains and 7.89% from dividends.

According to OCTA Finance, RBC reaffirms their $32.00 stock price. According to Forbes, Stock Channel names this stock in their top 25 dividend stocks.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.

Exchange Income Corporation was created to invest in profitable, well-established companies with strong cash flows operating in niche markets in Canada and/or the United States and to distribute stable monthly cash dividends to its shareholders. The Company currently owns subsidiaries in two niche business segments, aviation and specialty manufacturing. Its web site is here Exchange Income Corp.

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. Follow me on Twitter or StockTwits.

Tuesday, September 15, 2015

Alimentation Couche-Tard Inc. 2

Sound bite for Twitter and StockTwits is: Expensive stock, Div yield very low. See my spreadsheet on Alimentation Couche-Tard Inc.

I do not own this stock of Alimentation Couche-Tard Inc. (TSX-ATD.B, OTC-ANCUF). In 2004 I bought this stock as it has a good reputation and my spreadsheet showed I should do well with it. I bought more of this stock in 2006 and by the year end I bought more. I sold the stock in my trading account in 2007. In 2013, I sold the stock in my Pension account as it had the lowest dividend yield and I had to raise money in this account because of yearly withdrawals.

Over the past year in insider trading there has been some $0.2M of insider buying and some $31.1M of insider selling. Net insider selling is at 0.09% of the market cap of this stock. This is rather high. The median net insider for the stocks I cover is 0.02% and 70% are below 0.08%.

There are two classes of shares, Multiple Voting Shares are ATD.A with 10 votes per share and Subordinate Voting Shares are ATD.B with1 vote per share. , Alain Bouchard, the chairman owns almost 40% of the outstanding ATD.A shares. There is a lot of insider ownership especially amount the Directors of this company.

The 5 year low, median and high median Price/Earnings per Share Ratios are 12.04, 15.94 and 19.44. The 10 year P/E Ratios are similar at 12.26, 15.95 and 19.64. The current P/E Ratio is 23.28 based on a stock price of $59.63 and EPS estimate for 2016 of $2.56. The EPS estimate is some 62% CDN$ (or 35% in US$) higher than the EPS for 2015. This stock price testing suggests that this stock is relatively expensive.

I get a Graham Price of $20.93. The 10 year low, median and high median Price/Graham Price Ratios are 1.13, 1.47 and 1.81. The current P/GP Ratio is 2.85 based on a stock price of $59.63. This stock price testing suggests that the stock price is relatively expensive.

The 10 year Price/Book Value per Share Ratio is 2.88. The current P/B Ratio is 7.84 based on BVPS of $7.60 and a stock price of $59.63. The current P/B Ratio is some 172% higher than the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

The 5 year median dividend yield is 0.60%. The current dividend yield is 0.37% based on dividends of $0.22 and a stock price of $59.63. The current dividend yield is some 39% higher. You do not get any better result using the historical average and the historical median dividend yields of 0.77% and 0.65%. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. The 12 month stock price is $48.90 in US$ where the current US$ price is $45.30. This implies a total return of 8.32% with 7.955 from capital gains and 0.37% from dividends. This is a very low return for a Buy recommendation.

In an article for Motley Fool, Demetris Afxentiou says this stock is a counter recession stock. Some analysts are raising their target price for this stock according to a recent Dakota Financial News article. The Blogger on Dividend Growth Investing also thinks that the dividend yield is too low. However, he has higher standards than me..

This is the second of two parts. The first part was posted on Monday, September 14, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.

Couche-Tard is the largest convenience store operator in North America with over 4,600 company-operated stores. In Europe, with over 1,600 company-operated sites, Couche-Tard is a leader in c-store and road transportation fuel in Scandinavian and the Baltic States, with a growing presence in Poland. Its web site is here Alimentation Couche-Tard Inc.

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. Follow me on Twitter or StockTwits.

Monday, September 14, 2015

Alimentation Couche-Tard Inc.

On my other blog I am today writing about stocks I looked at more closely in my monthly update continue...

Sound bite for Twitter and StockTwits is: Div growth consumer stock, low div. I personally would not buy a stock with a dividend yield of less than 1%. If you are patient this stock pops above 1% occasionally. My reason is that when the dividend yield is below 1% it takes so long to get a decent yield from your original purchase. See my spreadsheet on Alimentation Couche-Tard Inc.

I do not own this stock of Alimentation Couche-Tard Inc. (TSX-ATD.B, OTC-ANCUF). In 2004 I bought this stock as it had a good reputation and my spreadsheet showed I should do well with it. I bought more of this stock in 2006 as it had a good past record and had started to pay a dividend. By the year end I bought more as TD Bank said it was a good time to buy this stock. I sold the stock in my trading account in 2007 as I was raising mortgage money and this stock had gone down so was cheap, tax wise, to sell. In 2013, I sold the stock in my Pension account as it had the lowest dividend yield and I had to raise money in this account because of yearly withdrawals.

In 2006 this company started to report in US$, but their dividends are still paid in CDN$. Currently the dividend yield is very low at just 0.37% based on a stock price of $59.63. It also has a 5 year median dividend yield of just 0.60%. The dividend growth is quite good with the 5 and 10 year dividend growth at 29.4% and 21.6% per year. The latest increase was in 2015 and the increase was for 22.2%.

The Dividend Payout Ratios are also good. The DPRs for 2015 for EPS was 9.7% and for CFPS was 6.6%. The 5 year median DPRs for EPS is 9.6% and for CFPS is 5.5%. This stock has a financial year ending at the end of April each year.

Shareholders have done well lately with the 5 and 10 year total return at 46.61% and 22.96%. The portion of this total return attributable to dividends is 0.71% and 0.41%. The portion of this total return attributable to capital gain is 45.90% and 22.56%.

The outstanding shares have not changed much with 5 year growth of 0.6% per year and a 10 year decline of 0.8% per year. Since this company is reporting in US$, I will use US$ growth values. Revenue, earnings and cash flow growth has all been good.

Revenue has grown at 16% and 15.4% per year over the past 5 and 10 years. Revenue per Share has grown at 15.3% and 16.2% per year over the past 5 and 10 years. Analysts expect Revenue growth at 10% for 2016. However if you look at the 12 month period to the end of April 2015 and the 12 month period to the end of the first quarter of 2016, Revenue is flat.

EPS is up by 25.2% and 20.1% per year over the past 5 and 10 years. Analysts expect growth in EPS at around 35% in 2016. If you look at the 12 month period to the end of April 2015 and the 12 month period to the end of the first quarter of 2016, EPS growth is just 3.6%. At least it is going in the right direction.

Cash Flow has grown at 20.5% and 15.3% per year over the past 5 and 10 years. CFPS has grown at 19.8% and 16.2% per year over the past 5 and 10 years. Analysts expect cash flow to decline by 3% in 2016. However if you look at the 12 month period to the end of April 2015 and the 12 month period to the end of the first quarter of 2016, Cash Flow is up by 2.9%.

The Return on Equity has been above 10% every year over the past 10 years. The current ROE is 23.9% and it has a 5 year median of 20.4%. The ROE on Comprehensive Income is a lot lower at just 0.2%. The difference is mostly currency translations. The 5 year median ROE on comprehensive income is 20.4%. However, this does suggest that the earnings are not quite as good as they appear.

Debt ratios could be better but are fine. The Liquidity Ratio is 1.12. If you had in cash flow after dividends the ratio is 1.79. The Debt Ratio is 1.56. I would prefer the Liquidity Ratio to be 1.50. The Leverage and Debt/Equity Ratios in 2015 are 2.77 and 1.77. I would prefer them to be at less than 2.00 and less than 1.00. However, these ratios are not a concern at this point.

This is the first of two parts. The second part will be posted on Tuesday, September 15, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.

Couche-Tard is the largest convenience store operator in North America with over 4,600 company-operated stores. In Europe, with over 1,600 company-operated sites, Couche-Tard is a leader in c-store and road transportation fuel in Scandinavian and the Baltic States, with a growing presence in Poland. Its web site is here Alimentation Couche-Tard Inc.

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. Follow me on Twitter or StockTwits.

Friday, September 11, 2015

Chemtrade Logistics Income Fund

Sound bite for Twitter and StockTwits is: Price reasonable to expensive, Debt Ratio vulnerability. It is hard to peg the price. A P/E of 36.16 is rather high for this sort of stock. I also wonder about the EPS estimate being too high and therefore the P/E being too low. The P/B Ratio does not use estimates and 1.70 is also the historical median P/B Ratio. There is more insider buying and insider selling. Low Liquidity Ratio makes a company vulnerable. See my spreadsheet at che.htm.

I do not own this stock of Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF). I decided to investigate this stock after reading an article in the G&M in February 2012 about investing in small cap stocks that pay dividends. This was one of the stocks mentioned that I had never heard of before.

There has been a lot of research later that say that companies with high dividend yields produce the best returns over the longer term. This company still has a high dividend yield of $6.64% on a stock price of $18.08. The 5 year median dividend yield is also high at 7.6%. Some analysts are predicting a distribution increase for 2015 or at some point in the future.

This company still calls itself an income trust, but as with other Canadian Income Trusts it will be taxed as a corporation. The distributions are not taxed as dividends. The distributions are taxed partly as Other Income, Dividends and Foreign Non-Business Income.

This company started to pay dividends in 2001. It raised dividends most years until it decreased them in 2007 by 16.7%. The announcement for changes to income trusts occurred in October of 2006 for the new rules to come into effect in 2011.

Shareholders have done well over the past 5 and 10 years with total return to date at 11.04% and 15.06% over the past 5 and 10 years. The portion of this total return attributable to capital gain is at 3.61% and 5.43%. The portion of this total return attributable to dividends is at 7.43% and 9.63%. Note that yield has come down lately and are unlikely to reach as high as they had in the past.

The outstanding shares have increased by 17.4% and 11.3% per year over the past 5 and 10 years. This increase in shares makes per share values the most important ones for judging growth. Revenue growth is non-existent to good. Distributable Income growth has been low to moderate. There has been no EPS growth. Cash Flow growth is moderate to good. Note it is Revenue and Cash Flow growth that is good, not Revenue per Share or CFPS growth.

Revenue has grown at 17.1% and 13.3% per year over the past 5 and 10 years. Revenue per Share has grown at 0% to 1.8% per year over the past 5 and 10 years. Analysts expect Revenue to grow by 11% this year (and perhaps Revenue per Share by 10%). If you compare the 12 month period to the end of 2014 to the 12 month period to the end of the second quarter, Revenue is up by 6.1%.

Distributable Income (or what income is available for dividends) has grown by 7.54% and 1.2% per year over the past 5 and 10 years. However, DI has been rather volatile and if you look at 5 year running averages, the growth is just 2.3% and 1.9% per year over the past 5 and 9 years. Analysts expect growth of 4.8% this year. If you compare the 12 month period to the end of 2014 to the 12 month period to the end of the second quarter, DI is up by 13.3%.

EPS is down by 25.5% and 6.8% per year over the past 5 and 10 years. Because EPS has also been volatile we should also look at 5 year running averages. Using 5 year running averages EPS is up by 0.5% and 0.3% per year over the past 5 and 9 years. Analysts expect growth in EPS of around 43% for 2015. If you compare the 12 month period to the end of 2014 to the 12 month period to the end of the second quarter, EPS is down by 37%. You have to wonder about EPS estimates.

Cash Flow is up by 26.3% and 17.1% per year over the past 5 and 10 years. CFPS is up by 7.6% and 5.2% per year over the past 5 and 10 years. Growth in CFPS using 5 year running averages is similar. Analysts expect growth in Cash Flow to be around 49% in 2015. If you compare the 12 month period to the end of 2014 to the 12 month period to the end of the second quarter, Cash Flow is up by 34%.

Debt ratios are borderline fine. The Liquidity Ratio is 0.94 for 2014. If you had in cash flow after dividends it becomes 1.03. Basically with cash flow current assets match current liabilities. I prefer this ratio to be 1.50. Debt Ratio is fine at 1.59. Leverage and Debt/Equity Ratios are fine but a little high at 2.69 and 1.69. When you have low Liquidity Ratios, it shows that the company may be vulnerable to hard times. There are always companies that go bankrupt in recessions.

The Return on Equity has been very low in the past two years at 1.8% and 2.5%. However, ROE on comprehensive income is much better at 11.9% and 9.8% in the past two years.

The 5 year low, median and high median Price/Earnings per Share Ratios are 15.40, 16.79 and 18.17. The 10 year corresponding values are a bit lower at 13.91, 15.68 and 17.45. The current P/E Ratio is 36.16 based on a stock price of $18.08 and 2015 EPS estimates of $0.50. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $11.97. The 10 year low, median and high median Price/Graham Price Ratios are 0.96, 1.11 and 1.27. The current P/GP Ratio is 1.51 based on a stock price of $18.08. This stock price testing suggests that the stock price is relatively expensive.

The 10 year Price/Book Value per Share Ratio is 1.70. The current P/B Ratio is 1.42 based on BVPS of 12.75 and a stock price of $18.08. This stock price testing suggests that the stock price is relatively reasonable and below the relative median.

Because dividend yields have been decreasing due to the change in income trust rules using dividend yield is probably not the best test. However, the 5 year median dividend yield is 7.60% and the current dividend yield at 6.64% is some 12.7% lower. This stock price testing suggests that the stock price is relatively reasonable but above the relative median. This result is not surprising as dividends have been flat for some time.

When I look at analysts’ recommendations, I find Buy and Hold recommendations. Most recommendations are a Buy and the consensus recommendations would be a Buy. The 12 month stock price consensus is $22.00. This implies a total return of 28.32% with 21.68% from capital gains and 6.64% from dividends.

A recent report on Dakota Financial News talks about the next dividend and some analysts change in recommendations. Note that this is an America site and therefore is showing the dividend as $0.076 per share for August. They do not say so, but this is in US$. The CDN$ distribution is still at $0.1 per Share for August. On BBN Keith Richards gives this stock as his top pick.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.

Chemtrade Logistics Income Fund is a global supplier of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite and a processor of spent acid, particularly in the U.S. Gulf Coast region. Chemtrade is also a regional supplier of sulphur, sodium chlorate and phosphorus pentasulphide, and also produces zinc oxide at three North American locations. Its web site is here Chemtrade.

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. Follow me on Twitter or StockTwits.

Thursday, September 10, 2015

Badger Daylighting Ltd.

Sound bite for Twitter and StockTwits is: Relatively expensive but insider buying. Insider buying is at 0.09%. This is rather high. Most stocks I track have insider selling with a median insider selling of $0.02% and 70% have insider selling at 0.07% or less. See my spreadsheet at bad.htm.

I do not own this stock of Badger Daylighting Ltd. (TSX-BAD, OTC- BADFF). I started to follow this stock after reading a couple of articles in February 2012 in the G&M that talked about the company. The first article looked at what the pros who manage small-cap funds are buying. Badger was one of 10 stocks mentioned and it looked like an interesting stock. It is a dividend paying small cap. The second article looked at what stocks might appeal to a conservative investor looking for income.

This stock used to be an income trust. When it changed to a corporation, it lowered its dividends or distributions by some 19% in 2011. Since then it has had one dividend increase of 5.9% in 2013. It also still pays dividends monthly. This company only started to pay dividends in 2004. Between 2004 and 2011 it raised the distributions some years and left them flat other years.

Dividend yields on this company were good when it was an income trust. But most income trusts companies had good dividends. Currently the dividend yield is moderate. The current dividend is 1.82% based on a stock price of $19.80 and dividends of $0.36. The 5 year median dividend is much better at 3.81%.

The Dividend Payout Ratios are reasonable. The DPR for 2014 for EPS was 25% and for CFPS was 13.3%. The 5 year median DPR ratio for EPS was 43% and for CFPS was 25%. Earnings are expected to drop in 2015 and DPR for EPS is expected to be around 55% in 2015. The second quarterly report shows EPS dropping.

Shareowners have done well. The 5 and 10 year total return to date is 29.21% and 17.32%. The portion of this total return that is dividends is 3.74% and 4.32%. The portion of this total return that is capital gain is 25.47% and 13.00%. However, the stock price has dropped some 25% in 2015 after making great gains in 2012 and 2013.

Outstanding shares have increased by 2.7% and 1.7% per year over the past 5 and 10 years. Shares have increased due to Stock Options and Share Issues. This company has had good growth in Revenue, Earnings and Cash Flow over the past 5 and 10 years. One problem is that the company is not expected to do very well in 2015.

Revenue is up by 25.6% and 18.3% per year over the past 5 and 10 years. Revenue per Share is up by 22.3% and 16.3% per year over the past 5 and 10 years. Revenue is expected to drop by around 6% in 2015. If you compare the 12 month period to the end of 2014 and the 12 month period to the end of the second quarter, Revenue is down by 2%.

EPS is up by 18.7% and 12.7% per year over the past 5 and 10 years. EPS is expected to drop by 54% in 2015. If you compare the 12 month period to the end of 2014 and the 12 month period to the end of the second quarter, EPS is down by 37%.

Cash Flow per Share is up by 23.2% and 15.2% per year over the past 5 and 10 years. CFPS is expected to climb by some 25% in 2015. If you compare the 12 month period to the end of 2014 and the 12 month period to the end of the second quarter, CFPS is up by 9.7%.

Debt Ratios are very good. The Liquidity Ratio for 2014 was 2.86 and the Debt Ratio was 2.02. The Leverage and Debt/Equity Ratios were 1.98 and 0.98.

The 5 year median Price/Earnings per Share Ratios are 9.19, 11.15 and 13.11. The corresponding 10 year ratios are similar at 8.99, 10.98 and 13.36. The current P/E Ratio is 30.46 based on a stock price of $19.80 and 2015 EPS estimate of $0.65. Part of the reason for this high P/E Ratio is that the company's EPS is expected to drop in 2015. This stock price testing suggests that the stock is relatively expensive.

The 10 year median Price/Book Value per Share ratio is 3.14. The current P/B Ratio is 3.25 a value some 3% higher. The current P/B Ratio is based on BVPS of $6.10 and stock price of $19.80. This stock price testing suggests that the stock price is relatively reasonable and just slightly above the relative median. However, a P/B Ratio is 3.25 is a rather high P/B Ratio. A P/B Ratio is 1.50 is considered a good one and 70% of the stocks I cover have a P/B Ratio of 2.11 or less.

The 5 year dividend yield is 3.81% compared to the much lower current dividend yield of 1.82%. The current dividend yield is based on dividends of $0.36 and a stock price of $15.80. The historical average and median yields are even higher at 6.31% and 5.70%. This stock price testing suggests that the stock price is relatively expensive. This is caused by a relatively flat dividend and an increasing stock price.

As far as I can see there is only one analyst following this stock and the stock recommendation is a Buy. The 12 month target price is $30.00. This implies a total return of 53.33% with 1.82% from dividends and 51.52% from capital gains.

This recent Dakota Financial News article talks about insider buying and Canaccord Genuity increasing their stock price target. This BNN report says that this company is a top pick for Norman Levine.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.

Badger is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Badger's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Its web site is here Badger Daylighting.

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. Follow me on Twitter or StockTwits.

Wednesday, September 9, 2015

Evertz Technologies 2

On my other blog I am today writing about possible cheap dividend stocks for September 2015 continue...

Sound bite for Twitter and StockTwits is: Stock price is reasonable to cheap. The first quarterly report for 2016 was published today and it was not great. The company had lower Revenues, Earnings and Cash Flow that for the same report last year. The stock price fell almost 5% today and it makes it an even better deal. See my spreadsheet at et.htm.

I own this stock of Evertz Technologies (TSX-ET, OTC-EVTZF). I came across an article in G&M about ET and it seemed a good dividend paying company. It has high dividends and is probably riskier than average. The company also has a large amount of insider ownership.

The 5 year low, median and high median Price/Earnings per Share Ratio are 13.92, 17.70 and 21.07. The corresponding 10 year values are similar at 14.04, 17.72 and 20.36. The current P/E Ratio is 16.03 based on a stock price of $15.87 and 2016 EPS estimate of $0.99. This stock price testing suggests that the stock price is relatively reasonable. It is also below the relative median.

I get a Graham Price of $10.28. The 10 year Price/Graham Price Ratios are 1.41, 1.68 and 1.99. The current P/GP Ratio is 1.54 based on a stock price of $15.87. This stock price testing suggests that the stock price is relatively reasonable. It is also below the relative median.

I get a 10 year Price/Book Value per Share Ratio of 3.58. The current P/B Ratio is 3.34 a value some 6.6% lower. This P/B Ratio is based on a BVPS of $4.75 and a stock price of $15.87. This stock price testing suggests that the stock price is relatively reasonable. It is also below the relative median.

The 5 year median dividend yield is 4% and this is some 13.4% lower than the current dividend yield of 4.54% which is based on dividends of $0.72 and a stock price of $15.87. The current dividend yield is also higher than the historical average of at2.94% and the historical median at 2.74% by 54% and 66%. This stock price testing suggests that the stock price is relatively reasonable to relatively cheap.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation is a Buy. The 12 month price is $19.30. This implies total return of 26.15% with 21.61% from capital gains and 4.54% from dividends.

There is some analysts' updates in a recent report by Dakota Financial News. Recently, Canaccord Genuity cut their stock price for this company to $19.00 according to OCTA Finance.

This is the second of two parts. The first part was posted on Tuesday, September 08, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.

Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is here Evertz.

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. Follow me on Twitter or StockTwits.