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Investment Talk by Spbrunner - 2d ago
Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. Dividend has certainly been variable. They will probably end as a dividend growth company. They are cheap currently. They have good debt ratios which can see them through rough times. See my spreadsheet on Mullen Group Ltd.

I own this stock of Mullen Group Ltd (TSX-MTL, OTC-MLLGF). I like to look at recommended small cap dividend paying stock to see if they would be a possible good investment now or in the future. The other thing to mention about this stock is that it has converted from an income trust and has decreased it dividends.

When I was updating my spreadsheet, I noticed that the EPS loss in 2018 was caused by a goodwill impairment of $100M. This means that the EPS is not as depressed as it might seem to be.

The company cut dividends in 2009 when it converted from an income trust. The company started to raise dividends again in 2011, but probably raised them too much too soon. They had to cut dividends again in 2016. They raised them again in 2018. As you can see from the chart below, the dividend growth is a mixed record.

The Dividend Payout Ratios are fine. The DPR for 2018 cannot be calculated as the EPS for 2018 was negative. The 5 year coverage comes in very high at 209%. Analysts expect the DPR for EPS for 2019 to be around 107%. The DPR for CFPS for 2018 is better at 31% with 5 year coverage at 32%.

Debt Ratios are good. The Long Term Debt/Market Cap Ratios for 2018 is low and good at 0.38. The Liquidity Ratio for 2018 is good at 1.94. This ratio has always been good with a 5 year median at 2.13. The Debt Ratio is very good at 2.20 with 5 year median at 2.05. The Leverage and Debt/Equity Ratios are also very good at 1.83 and 0.83 respectively with 5 year medians at 1.86 and 0.86.

The Total Return per year is shown below for years of 5 to 21 to the end of 2018. 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 charts below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 -15.55% -11.81% -15.53% 3.72%
2008 10 -10.71% 6.09% -0.44% 6.53%
2003 15 10.30% 7.18% -0.50% 7.69%
1998 20 8.51% 12.40% 4.15% 8.26%
1997 21 9.34% 2.68% 6.66%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.17, 27.50 and 31.83. The corresponding 10 year ratios are 13.46, 15.78 and 18.10. The corresponding historical ratios are 12.04, 15.05 and 18.29. The current P/E Ratio is 17.84 based on a current stock price of $9.99 and 2019 EPS estimate of $0.56. This stock price testing suggests that the stock price is relatively reasonable, but above the median.

I get a Graham Price of $10.37. The 10 year low, median, and high median Price/Graham Price Ratios are 1.06, 1.30 and 1.54. The current P/GP Ratio is 0.96 based on a stock price of $9.99. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.93. The current P/B Ratio is 1.17 based on Book Value of $894.M, Book Value per Share of $8.53 and a stock price of $9.99. The current ratio is some 39% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 3.99%. The current dividend yield is 6.01% based on dividends of $0.60 and a stock price of $9.99. The current yield is 51% above the historical one. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 1.35. The current P/S Ratio is 0.80 based on 2019 Revenue estimate of $1,307M, Revenue per Share of $12.47 and a stock price of $9.99. The current Ratio is some 40% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is showing up mostly as cheap. The only one that shows differently is the P/E Ratio test, but this is seldom a good test. The stock price has been hammered because it services the oil and gas industries. The stock price will move around but it will not substantially affect the results of the stock price testing over the short term.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (2), Hold (7) and Underperform (1). The consensus would be a Hold. The 12 month stock price consensus is $13.88. This implies a total return of 44.94%, with 38.94% from capital gains and 6.01% from dividends based on a current stock price of $9.99.

See what analysts are saying on Stock Chase. They like the company, but it has been pulled down with the oil down wave. Amy Legate-Wolfe on Motley Fool likes this stock. A writer on Simply Wall Street talks about ownership. A writer on Simply Wall Street talks about recent insider selling. Kevin Carmichael writes an interesting article on Calgary Herald about this company and its CEO, Murray Mullen.

Mullen Group Ltd supplies trucking and logistics services to the oil and natural gas industry in Canada and the United States. The company comprises two business segments: trucking/logistics and oilfield services. Product and service offerings include a range of truckload and less-than-truckload (relatively small freight) freight services. Its web site is here Mullen Group Ltd.

The last stock I wrote about was about was Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. The next stock I will write about will be Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more on Tuesday, May 21, 2019 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.
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Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is probably cheap. A recently dividend increase is a very good sign. See my spreadsheet on Hammond Power Solutions Inc.

I own this stock of Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF). I bought this stock as my main purchase for the TFSA in 2013 and 2014. I picked Hammond initially in 2013 as my main buy because it has good growth and reasonable dividend. Also, I think that it important to try out newer smaller companies for investment purposes. Companies on the TSX are always changing and it is good to get into new industries and new companies. The problem of this, of course, is you do not always know what industries and companies will be long lasting.

When I was updating my spreadsheet, I noticed that they had an earnings loss because they took a hit or loss from a discontinued business. They also give a EPS based on continuing business and this one is also important.

The dividend yield started off in the low range, but has moved to a moderate range. This is mainly because of stock price dropping. The current dividend yield is 3.57%, the 5 and 9 year median dividend yields are 3.20% and 2.65%. The dividends grew after they were started in 2009, but they had been flat since 2014 to 2018. However, the company raised the dividend in 2019 by 16.7%. They obviously feel that they are going to be doing better in the near future.

The Dividend Payout Ratios are improving. The 2018 DPR is not calculable because of negative earnings. However, the 5 year coverage is 364%. The DPR for CFPS for 2018 is good at 20% with 5 year coverage at 16%.

Debt Ratios are good. The company has no long term debt. The Liquidity Ratio is fine, but I prefer it to be always over 1.50. For 2018, the Liquidity Ratio was 1.47, with 5 year median at 1.51. The Debt Ratios has always been good and the one for 2018 is 2.12 with 5 year median at 2.46. The Leverage and Debt/Equity Ratios have also always been good with the ratios for 2018 at 1.89 and 0.89 respectively and with 5 year medians at 1.64 and 0.64 respectively.

The Total Return per year is shown below for years of 5 to 17 to the end of 2018. 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 charts below.

I have had this stock for just over 6 years and my total return is 1.17% with a capital loss of 1.87% and dividends of 3.04%.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 3.71% -0.28% -4.00% 3.72%
2008 10 10.22% 0.68% -2.44% 3.13%
2003 15 23.71% 18.27% 5.44%
2001 17 15.28% 11.84% 3.43%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.63, 15.38 and 19.13. The corresponding 10 year ratios are 11.30, 14.07 and 16.85. The historical ratios are 6.93, 9.10 and 10.73. The current P/E Ratio, using EPS from continuing operations, is 9.69. This is based on last 12 month EPS of $0.81 and a stock price of $7.85. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $12.95. The 10 year low, median, and high median Price/Graham Price Ratios are 0.60, 0.79 and 0.97. The current P/GP Ratio is 0.61 based on a stock price of $7.85. This stock price testing suggests that the stock price is relatively reasonable and below the median. It is almost cheap.

I get a 10 year median Price/Book Value per Share Ratio of 0.90. The current P/B Ratio is 0.85 based on a Book Value if /4107M, Book Value per Share of $9.20 and a stock price of $7.85. The current ratio is 5.4% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 2.65%. The current dividend yield is 3.57% based on dividends based on dividends of $0.28 and a stock price of $7.85. The current yield is 35% above the historical median. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.39. The current P/S Ratio is 0.28 based on last 12 months Revenue of $325.7M, Revenue per Share of $28.12 and a stock price of $7.85. The current ratio is 28% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. This is showing up the P/S Ratio, the dividend yield, and P/E Ratio testing. Under the P/GP Ratio testing the stock price is close to cheap. It is only showing up as relatively reasonable and below the median under the P/B Ratio test.

When I look at analysts’ recommendations, I find that no analysts are following this stock.

See what analysts are saying on Stock Chase. They have mixed views, but few follow this stock. A writer on Simply Wall Street talks about some recent insider selling. However the CEO and Chairman has recently bought shares. A writer on Simply Wall Street talks about the company’s debt. On SB Wire there is an article about growth in Industrial Transformers. The article mentions this company. Lisa Richards on Driscoll Register says the company is oversold.

Hammond Power Solutions Inc is a Canada-based manufacturer of dry-type magnetics. It is engaged in the design and manufacture of custom electrical engineered magnetics. The firm is also a manufacturer of standard electrical dry-type, cast resin, and liquid-filled transformers. It supports solid industries, such as oil and gas, mining, steel, waste and water treatment, and wind power generation. The company operates in following geographical markets Canada, the United States, Mexico, and India in which it derives majority revenue in the United States and Mexico. Its web site is here Hammond Power Solutions Inc.

The last stock I wrote about was about was Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. The next stock I will write about will be Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Friday, May 17, 2019 around 5 pm. Tomorrow on my other blog I will write about Teaching my Son to Read.... learn more on Thursday, May 17, 2019 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.
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Investment Talk by Spbrunner - 6d ago
Sound bite for Twitter and StockTwits is: Dividend Growth Utility. My testing shows that the stock price is reasonable and below the median. The stock has not done well lately, but things seem to be picking up in 2018. See my spreadsheet on Canadian Utilities Ltd.

I own this stock of Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I started to follow this stock in January of 2009 because it was on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs’ dividend growth list at that time. The Dividend Aristocrats list is now an index on the TSX. ATCO (TSX-ACO-X) owns 88% of this stock, so you would not buy both these stocks.

When I was updating my spreadsheet, I noticed that the stock has not done well over the past 5 years. It hit highs in 2013 and 2014 which has not be able to get back to. It did well in 2018 and they have been increasing the dividend at a higher rate than in the past until this year.

The dividend yield has varied over the years, but it is in the moderate range. The current dividend yield is 4.62%, with 5, 10 and historical yields at 3.69%, 3.16% and 3.67%. They are rising the dividend in the 10% range from 2014 to 2018, but the most recent dividend rise was for 7.5% and it was in 2019. They tend to raise the dividends at the beginning of each year.

The Dividend Payout Ratios are currently fine. The DPR for EPS for 2018 was 76% with 5 year coverage at 70%. The DPR for CFPS for 2018 was 19% with 5 year coverage also at 19%.

Debt Ratios are fine, but like a lot of utility, they have a lot of debt. The Long Term Debt/Market Cap Ratio for 2018 is too high at 1.15. The main reason for the high ratio is the drop in stock price. The current ratio is lower at 0.97. The Liquidity Ratio is low at 1.15 for 2018. If you add in cash flow after dividends, the ratio becomes 1.66. The Debt Ratio is also lower than what I like at 1.43 with 5 year median better at 1.51. Leverage and Debt/Equity Ratios are high at 3.33 and 2.33 respectively with the 5 year coverage better at 2.92 and 1.92.

The Total Return per year is shown below for years of 5 to 28 to the end of 2018. 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 charts below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 10.15% 1.29% -2.57% 3.86%
2008 10 8.99% 8.62% 4.46% 4.16%
2003 15 7.80% 9.42% 5.29% 4.13%
1998 20 6.95% 8.78% 4.91% 3.87%
1993 25 6.14% 11.35% 6.55% 4.79%
1990 28 5.61% 11.88% 6.70% 5.18%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.91, 17.34 and 15.56. The corresponding 10 year ratios are 14.35, 16.00 and 17.76. The corresponding historical ratios are 11.08, 14.02 and 15.82. The current P/E Ratio is 16.79 based on a stock price $36.60 and 2019 EPS estimate of $2.18. This stock price testing suggests that the stock price is reasonable but above the median.

I get a Graham Price of $29.64. The 10 year low, median, and high median Price/Graham Price Ratios are 1.13, 1.26 and 1.42. The current P/GP Ratio is 1.23 base on a stock price of $36.60. This stock price testing suggests that the stock price is reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 2.19. The current P/B Ratio is 2.04 based on a Book Value of $4,892M, Book Value per Share of $17.91 and a stock price of $36.60. The current ratios is 6.8% below the 10 year ratio. This stock price testing suggests that the stock price is reasonable and below the median.

I get an historical median dividend yield of 3.67%. The current dividend yield is 4.62% based on dividends of $1.69 and a stock price of $36.60. The current yield is 26% below the historical yield. This stock price testing suggests that the stock price is reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 2.66. The current P/S Ratio is 2.43 based on 2019 Revenue estimate of $4,113M, Revenue per Share of $15.06 and a stock price of $36.60. The current ratio is 8.6% below the 10 year ratio. This stock price testing suggests that the stock price is reasonable and below the median.

Results of stock price testing suggests that the stock price is reasonable and below the median. Some of what I have been reading is that the stock price is high, but my testing suggests otherwise. All my test except for the P/E Ratio suggests that the stock price is reasonable and below the median. However, I must admit that the stock price has gone no where lately and my total return over the past 2 years that I have owned this stock is only 2.02%.

When I look at analysts’ recommendations, I find Buy (2) Hold (7). The consensus would be a Hold. The 12 month stock price is $37.88. This implies a total return of 8.12% with 3.50% from capital gains and 4.62% from dividends.

See what analysts are saying on Stock Chase. Mainly they say that the company is interest sensitive. Amy Legate-Wolfe on Motley Fool says that the stock is overpriced, so buy on a dip. A writer on Simply Wall Street says that the company has served its shareholders reasonably well. A writer on Simply Wall Street does not like the fact that dividends are growing but EPS is not. The blogger Passive Canadian Income talks about why he bought some of this stock last year.

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company's main divisions include electricity (generation, transmission, and distribution), pipelines and liquid (natural gas and water), and Corporate and others. Headquartered in Calgary, Alberta, the firm mainly operates in Canada and Australia, along with some operations in the United States, United Kingdom, and Mexico. Its web site is here Canadian Utilities Ltd.

The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC-AGGZF) ... learn more. The next stock I will write about will be Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Wednesday, May 15, 2019 around 5 pm. Tomorrow on my other blog I will write about Buy Backs.... learn more on Tuesday, May 14, 2019 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.
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Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price is relatively cheap to reasonable. I doubt there will be any dividend increase until the Dividend Payout Ratios get better, but in the meantime, you can earn an yield of over 4%. I am holding on to this stock. See my spreadsheet on Ag Growth International.

I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). This is an income trust that did not cut the dividends. They are paying too high of a dividend compared to earnings, even if you just take into consideration dividends paid in cash. They cannot increase their dividends until the Dividend Payout Ratio gets better. Dividend yield is still quite high at over 4%.

When I was updating my spreadsheet, I noticed that they sales are growing well, but they had a bad earnings year in 2018. The analysts expected $2.90 in EPS but EPS was just $1.56. Analysts expect EPS to be better this year at $3.30. For this company EPS tend to go up and down a lot.

Dividend yields are in the high end of the moderate range and into the good range. The current dividend is 4.41% with 5, 10 and historical yields at 4.83%, $5.69% and 6.40%. This company changed to a corporation in 2009 and since then the median yield has been 5.60%.

This company did not decrease the dividends when it became a corporation. It has not increased the dividends since 2011 because it is still paying out too much in the way of dividends compared to its earnings and cash flow.

The Dividend Payout Ratios are too high. The DPR for EPS for 2018 is 154% and 5 year coverage at 340%. The DPR for CFPS for 2018 is 37% with 5 year coverage at 52%. Some analysts are still looking at FFO for funding and in fact the company says that the dividends are funded from cash form operations. The DPR for FFO for 2018 is 42% with 5 year coverage at 57%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is fine at 0.32. The Liquidity Ratio is good at 1.71 for 2018 with 5 year median at 1.58. The Debt Ratio is fine at 1.54 with 5 year coverage at 1.47. The Leverage and Debt/Equity Ratios are normal at 2.84 and 1.84 respectively and with 5 year median values at 2.45 and 1.45.

The Total Return per year is shown below for years of 5 to 15 to the end of 2018. 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 charts below.

I have done well with this stock. I have had it for 7.5 years and have a total return of 13.04% per year with 7.12% from capital gains and 5.92% from dividends.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 0.00% 6.23% 0.95% 5.28%
2008 10 2.75% 19.34% 10.18% 9.15%
2003 15 8.35% 21.68% 10.69% 10.99%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 22.79, 31.76 and 41.02. The corresponding 10 year ratios are 18.21, 23.29 and 27.78. The corresponding historical ratios are 14.34, 21.29 and 25.65. When a company is going through a difficult time, the P/E Ratios will only adjust so far. This is the reason for the relatively high P/E Ratio over the past 5 years. The current P/E Ratio is 16.50 based on a stock price of $45.46 and 2019 EPS estimate of $3.30. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $40.92. The 10 year low, median, and high median Price/Graham Price Ratios are 1.27, 1.75 and 2.06. The current P/GP Ratio is 1.33 based on a stock price of $54.46. 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 2.58. The current P/B Ratio is 2.41 based on Book Value of $414M, Book Value per Share of $22.55 and a stock price of $54.46. 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.

I get an historical median dividend yield of 6.40% and a median dividend yield of $5.60% from 2009. The current dividend yield is 4.41% based on a stock price of $54.46 and dividends of $2.40. The current yield is 31% and 21% below the above median yields. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.39. The current P/S Ratio is 0.93 based on 2019 Revenue estimate of $1,075M, Revenue per Share of $58.34 and a stock price of $54.46. The current ratio is some 33% 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 relatively cheap to reasonable. The best test is as usual the P/S Ratio test. Revenue counts a lot in the future earnings and cash flow of a stock. The P/B Ratio is a good one and it shows the stock price is reasonable. The Graham Price test does the same. The dividend yield testing is not good as this stock used to be an income trust. Income trust had much higher yields that corporations. The P/E Ratios are all over the place and too high and so that is not a good test.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (7). The consensus would be a Buy. The 12 month stock price consensus is $72.63. This implies a total return of 37.77% with 3.36% from capital gains and 4.41% from dividends.

See what analysts are saying on Stock Chase. They are mostly cautious because it is a small cap. Ryan Vanzo on Motley Fool says some good things about this company. A writer in Simply Wall Streetsays the company is highly leverage because total debt exceeds equity. This is not a ratio I look at. Erica Schwartz on Dispatch Tribunal talks about recent analysts rating. Note the $0.27 EPS for the first quarter is the adjusted EPS, that is EPS without special income or charges. Stephen Takacsy on BNN Business discusses the company.

Ag Growth International Inc manufactures portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment and grain drying systems. The company operates mainly in Portable handling, permanent handling, storage and conditioning, livestock, and manufacturing sectors. Its web site is here Ag Growth International.

The last stock I wrote about was about was Power Financial Corp (TSX-PWF, OTC-POFNF) ... learn more. The next stock I will write about will be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more on Monday, May 13, 2019 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.
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Investment Talk by Spbrunner - 1w ago
Sound bite for Twitter and StockTwits is: Dividend Growth Financial. This stock is cheap or close to being cheap. It is mostly into Life Insurance and it will do better as interest rates rise. The time to buy good companies is when they are cheap, not when the stock price goes high. See my spreadsheet on Power Financial Corp.

I own this stock of Power Financial Corp (TSX-PWF, OTC-POFNF). When I sold some bonds in 2001, I had money to spend. This was a stock on my hit list and was selling at a reasonable price. This stock was on Mike Higgs' dividend growth stocks and that is why I started a spreadsheet to investigate this stock in the first place.

When I was updating my spreadsheet, I noticed that my total return on this stock is rather low at just 7.04% per year over the 17 years I have had this stock. But if you hold stocks for the long term, companies will go through some tough times and Life Insurance companies have since 2008. However, I am in the stock market for dividends and of my total return I got 4.75% in dividends per year over these 17 years. I am fine with this.

I did know very low interest rates would harm Life Insurance companies. I also knew that things like very low interest rates would last a lot longer than everyone ever thinks they will.

The current dividend yield is good at 5.81%. The yield was in the moderate range prior to the 2008 bear market. The 5, 10 and historical yields are 4.73%, 4.80% and 3.43%. Prior to 2008, the dividend growth was moderate to good. However, dividend increases stopped in 2010 and did not resume until 2015.

The Dividend Payout Ratios are fine. The DPR for EPS for 2018 is 55% with 5 year coverage at 54%. The DPR for CFPS for 2018 is 16% with 5 year coverage at 16% also.

Debt Ratios are fine. Since this is a life insurance company you look at what assets and investments that they have to cover their long term obligations. For this company the Obligation/Asset Ratio is 0.90 and this is fine. (This means that obligations are 90% of assets, so this is good.) I get a Liquidity Ratio of 2.16, but this is not an important ratio for a life insurance company. The Debt Ratio is 1.08 and for Life Insurance companies, like banks any ratio about 1.04 for fine.

The Total Return per year is shown below for years of 5 to 27 to the end of 2018. 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 charts below.

I bought this stock at various times between 2001 and 2011. My total return is 7.04% per year with 4.75% per year from Dividends and capital gains of 2.29% per year. I am a long term investor and I plan to hold on to this stock. I expect that in the future that capital gains portion will go high and dividend portion will moderate.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 4.10% -1.31% -6.26% 4.94%
2008 10 2.53% 6.70% 0.78% 5.92%
2003 15 7.21% 5.32% 0.28% 5.04%
1998 20 10.10% 6.82% 2.11% 4.71%
1993 25 12.03% 14.13% 7.49% 6.64%
1991 27 12.01% 16.82% 9.23% 7.59%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.25, 11.22 and 12.19. The corresponding 10 year ratios are 10.31, 11.88 and 13.16. The corresponding historical ratios are 10.25, 12.00 ad 14.78. The current P/E Ratio is 8.84 based on a stock price of $31.38 and 2019 EPS estimate of $3.55. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $45.80. The 10 year low, median, and high median Price/Graham Price Ratios are 0.81, 0.92 and 1.02. The current P/GP Ratio is 0.69 based on a stock price of $37.38. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.54. The current/B Ratio is 1.2 based on Book Value of $18,750, Book Value per Share of $24.26 and a stock price of $31.38. The current P/B Ratio is some 22% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 3.43%. The current dividend yield is 5.81% based on dividends of $1.82 and a stock price of $31.38. The current yield is 69% 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 0.58. The current P/S Ratio is 0.50 based on 2018 Revenue estimate of $45,261M, Revenue per Share of $63.38 and a stock price of $31.38. 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.

Results of stock price testing is mostly coming up cheap. Although you cannot ignore the P/S Ratio test which says it is close the cheap, but not quite there. This is a conglomerate, and they usually are priced at a discount, however, my testing takes that into account.

When I look at analysts’ recommendations, I find Buy (2) and Hold (5). The consensus would be a Hold. The 12 month stock price is $34.43. this implies a total return of $15.53% with 9.72% from capital gains and 5.81% from dividends.

See what analysts are saying on Stock Chase. Some analysts like this stock and one says he prefers Sun Life. Andrew Walker on Motley Fool likes this stock for its yield. The site of Market Beat has some interesting date on this stock. Nelson Smith on Motley Fool thinks the company is a value trap. A writerSimply Wall Street thinks this company is cheap. Norman Levine on BNN Bloomberg discusses this stock.

Power Financial, a subsidiary of Power Corporation of Canada, is a diversified management and holding company with interests in the financial-services industry through its controlling interests in Great-West Lifeco and IGM Financial. It also has holdings in Pargesa, a diversified industrial group based in Europe. Its web site is here Power Financial Corp.

The last stock I wrote about was about was TFI International (TSX-TFII, OTC-TFIFF) ... learn more. The next stock I will write about will be Ag Growth International (TSX-AFN, OTC-AGGZF) ... learn more on Friday, May 10, 2019 around 5 pm. Tomorrow on my other blog I will write Something to Buy May 2019.... learn more on Thursday, May 09, 2019 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.
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Investment Talk by Spbrunner - 1w ago
Bye the way, I bought some 500 more shares of McCoy Global Inc (TSX-MCB, OTC-MCCRF) this morning at $0.78 per share. It is a possibility I have throwing good money after bad. However, our oil patch seems to be doing a bit better. McCoy services oil and gas industry. However, I doubt if our oil patch will truly recover until we can build more pipelines. It is anyone’s guess on what that will happen.

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Stock price is on the expensive side. The company gives a lot in stock options, but it is a techy sort of company. The stock options run around 2 to 3% per year and that is high. See my spreadsheet on TFI International Inc.

I own this stock of TFI International (TSX-TFII, OTC-TFIFF). I read a report called "6 Canadian Dividend Stocks That Fly Under the Radar" by John Heinzl in April of 2013. This is one of the stocks mentioned. There was also a good review of this stock by Advice Hotline by MPL Communications. I bought this stock in 2017 because I liked the spreadsheet. It is a stock recommended my MPL Communications.

When I was updating my spreadsheet, I noticed they give out a lot of options. Insiders seem not to retain options so it appears that insider are selling lots of shares. The difference between the Basic and Diluted EPS is stock options.

This company was an income trust, so its dividends were higher as all income trust were. It cut its dividends when it became a corporation. It started to increase dividends again in 2011. The current dividend is moderate at 2.20%. The 5, 10 and historical median dividend yields are higher at 2.43, 2.52% and 3.56%. The median yield since the company became a corporation is 2.45%.

As you can see from the chart below, the dividends have been growing recently. The older ones are low to no grow because of the dividend cut in 2008 and 2009. The last dividend increase was for 14.3% and it occurred this year.

The Dividend Payout Ratios are good. The DPR for EPS for 2018 is 26% with 5 year coverage at 25%. The DPR for CFPS for 2018 is 11% with 5 year coverage at 13%.

Debt Ratios are fine. The Long Term Debt/Market Cap ratio for 2018 is fine at 0.48. The Liquidity Ratio is low at just 1.08. It is good when you add in cash flow after dividends as it becomes 1.80. This low Liquidity Ratio could be a vulnerability. The Debt ratio is good at 1.64. The Leverage and Debt/Equity Ratios at 2.57 and 1.57 are normal.

The Total Return per year is shown below for years of 5 to 27 to the end of 2018. 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 charts below.

Total returns are now lower. This is mostly because of the lower dividends associated with this company’s move to a corporation. The dividends are going to be lower in the future to probably what has been happening in the past 5 years.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 10.07% 9.36% 6.92% 2.43%
2008 10 0.33% 29.62% 23.87% 5.75%
2003 15 -2.02% 16.49% 9.11% 7.38%
1998 20 -1.89% 23.61% 13.02% 10.58%
1993 25 22.81% 14.64% 8.17%
1991 27 17.77% 12.39% 5.38%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.58, 16.49 and 19.41. The corresponding 10 year ratios are 11.55, 14.34 and 17.22. The corresponding historical ratios are 8.84, 11.66 and 13.47. The current P/E Ratio is 12.14 based on a stock price of $43.58 and 2019 EPS estimate of $3.59. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $37.69. The 10 year low, median, and high median Price/Graham Price Ratios are 0.82, 1.17 and 1.39. The current P/GP Ratio is 1.16 based on a stock price of $43.58. 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 2.05. The current P/B Ratio is 2.48 based on Book Value of $1,483M, Book Value per Share of $17.579 and a stock price of $43.58. The current ratio is some 21% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.56% and a median dividend yield since the company has been a corporation at 2.45%. The current dividend yield is 2.20% based on dividends of $0.96 and a stock price of $43.58. The current yield is lower than both the historical at 38% lower and the median since a corporation at 10%. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.61. The current P/S Ratio is 0.69 based on 2019 Revenue estimate of $5,320, Revenue per Share of $63.06 and a stock price of $43.58. The current ratio is 14% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is on the expensive side. I do not think you can ignore the P/S Ratio or P/B Ratio tests which point to a rather expensive stock price. The P/GP Ratio test is a good one and it points to a reasonable price but close to the median. The dividend yield test is not a good one because the company used to be an income trust. I do not particularly care for the P/E Ratio Test at any time.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (8), and Hold (3). The consensus would be a Buy. The 12 months stock price is $53.36. This implies a total return of 24.64% with 22.49% from capital gains and 2.20% from dividends.

See what analysts are saying about this stock on Stock Chase. It is not well covered, but analysts like the company. Joey Frenette on Motley Fool likes the company, but feels it will fall hard in a down market. A Writer on Simply Wall Street likes how this stock has grown lately. Another writer on Simply Wall Street thinks the stock has lots of positives. Andrew Sebastian on Finance Daily talks about recent analyst’s reports..

TFI International Inc is a transportation and logistics company domiciled in Canada. The company organizes itself into four segments: package and courier, less-than-truckload, truckload, and logistics. The package and courier segment picks-up, transports, and delivers items across North America. Its web site is here TFI International Inc.

The last stock I wrote about was about was McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more. The next stock I will write about will be Power Financial Corp (TSX-PWF, OTC-POFNF) ... learn more on Wednesday, May 08, 2019 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2019.... learn more on Tuesday, May 07, 2019 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.
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Investment Talk by Spbrunner - 2w ago
Sound bite for Twitter and StockTwits is: Small Cap Industrial. The stock price is relatively cheap. There is insider buying. There was a return to profitability in the Third Quarter of 2018. The company has great debt ratios. See my spreadsheet on McCoy Global Inc.

I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). I decided to try out McCoy in 2011. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.

When I was updating my spreadsheet, I noticed There is a lot of red on the spreadsheet. It hit bottom in 2016 and has been improving since. There is lots of insider buying.

Currently they are not paying dividends. They have paid dividends in the past and expect that they will pay them again sometime in the future. They have even paid a special dividend. They have had earning loss in the last 4 years, so they are currently in no shape to pay dividends at this time.

The Dividend Payout Ratios have been erratic in pass, but they have cut their dividends whenever there has been earning losses. I suspect they will do the same in the future.

Debt Ratios are quite good and have always been. The Long Term Debt/Market Cap Ratio is good at 0.14 for 2018. The Liquidity Ratio is very good at 3.34 for 2018 with 5 year median at 3.81. This ratio has always been good on this stock. The Debt Ratio is very good at 3.09 with 5 year median at 4.46. Leverage and Debt/Equity Ratios are also very good at 1.48 and 0.48 respectively.

The Total Return per year is shown below for years of 5 to 21 to the end of 2018. 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 charts below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 0.00% -30.86% -31.90% 1.04%
2008 10 0.00% 3.95% -2.96% 6.91%
2003 15 0.00% 20.77% 7.67% 13.10%
1998 20 0.30% -3.41% 3.70%
1997 21 -2.60% -5.59% 2.99%


The 5 year low, median, and high median Price/Earnings per Share Ratios are -2.32, -3.19 and -4.07. The 10 year corresponding ratios are 2.08, 3.32 and 4.15. The corresponding 10 year ratios are 3.08, 8.27 and 10.19. The current P/E Ratio is 6.00 based on a stock price of $0.78 and 2019 EPS estimate of $0.13. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $2.07. The 10 year low, median, and high median Price/Graham Price Ratios are 0.47, 0.70 and 0.86. The current P/B Ratio is 0.38 based on a stock price of 0.78. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.22. The current P/B ratio is 0.53 based on a stock price of $0.78, Book Value of $40M, and Book Value per Share of $1.47. The current ratio is some 57% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.81. The current P/S Ratio is 0.34 based on 2019 Revenue of $62.5M, Revenue per Share of $2.27 and a stock price of $0.78. The current ratio is some 57% 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 relatively cheap. The important test are the P/S Ratio and P/B Ratio tests. The P/E Ratio is rubbish, but this often happens.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $1.35. This implies a total return of $73.08% all from capital gain.

See what analysts are saying on Stock Chase. This stock is not often followed. A writer on Simply Wall Street talks about insider buying. A positive report on Simply Wall Street talk about who owns stock in this company. Nick Waddell on CanTech writes positively about this company in November 2018.

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

The last stock I wrote about was about was Thomson Reuters Corp. (TSX-TRI, NYSE-TRI) ... learn more. The next stock I will write about will be TFI International (TSX-TFII, OTC-TFIFF) ... learn more on Monday, May 6, 2019 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.
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Investment Talk by Spbrunner - 2w ago
Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. It would seem that this stock is current relatively expensive. See my spreadsheet on Thomson Reuters Corp.

I own this stock of Thomson Reuters Corp (TSX-TRI, NYSE-TRI). I bought this stock in 1985 so I have had it for a very long time, almost 30 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has always been mediocre.

When I was updating my spreadsheet, I noticed a lot of red on my spreadsheet. The only reason the EPS looks good is because of earnings from discontinued business. The same thing occurred in 2017 also.

Dividend yields are in the moderate range (2% to 4% ranges). The current dividend yield is 2.33%, with 5, 10 and historical yields at 3.40%, 3.50% and 3.28%. The dividend increases were always in the low range (less than 8%). See the charts below. Dividends have been paid in US$ since 1989.

The Dividend Payout Ratios are acceptable. The Dividend Payout Ratio for 2018 was 26% with a 5 year coverage of 70% in US$. The 2018 is low because of earnings from discontinue operations. The 5 year coverage gives a better idea. The 2019 DPR is expected to be around 305% with 5 year coverage at 80%. The DPR for CFPS for 2018 is 135% with 5 year coverage at 56%.

Debt Ratios are all good this year. Long Term Debt/Market Cap Ratio is good at 0.13. The Liquidity Ratio is good at 1.84 and is probably the best it has ever been. The 5 and 10 year median Liquidity Ratios are 0.79 and 0.81. The Debt Ratio is good at 2.18. The 5 year median is 1.92. Leverage and Debt/Equity Ratios are also good at 1.85 and 0.85 with 5 year median ratios at 1.94 and 0.94.

The Total Return per year is shown below for years of 5 to 33 to the end of 2018 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 charts below.

It would generally been the case that Canadian shareholders have done better in CDN$ than US shareholders in US$.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 4.25% 13.65% 8.30% 5.34%
2008 10 3.51% 9.34% 5.33% 4.00%
2003 15 3.50% 4.54% 1.61% 2.92%
1998 20 2.83% 5.80% 2.68% 3.11%
1993 25 4.16% 9.50% 5.35% 4.15%
1988 30 4.55% 7.88% 4.41% 3.47%
1985 33 5.39% 7.81% 4.45% 3.36%


The Total Return per year is shown below for years of 5 to 28 to the end of 2018 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 charts below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 0.97% 7.48% 1.06% 4.87%
2008 10 2.52% 5.93% 3.20% 4.28%
2003 15 4.44% 3.79% 0.60% 3.19%
1998 20 4.03% 6.26% 2.81% 3.45%
1993 25 4.68% 8.91% 4.84% 4.07%
1990 28 4.60% 6.97% 3.64% 3.34%
1985 33 5.95%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.61, 15.54 and 17.47. The corresponding 10 year median ratios are 17.09, 19.08 and 21.07. The historical median ratios are 4.81, 18.94 and 23.32. The current P/E Ratio is 129.94 based on a stock price of $82.20 and 2019 EPS estimate of $0.63 CDN$ (or $0.47 US$). This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $18.79 CDN$. The 10 year low, median, and high median Price/Graham Price Ratios are 1.19, 1.43 and 1.60. The current P/GP Ratio is 4.38 based on a stock price of $82.20 CDN$. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 1.93 US$. The current P/B Ratio is 3.40 based on a stock price of $61.84, Book Value of $9,226 and Book Value per Share of $18.18 in US$. The current ratio is some 76% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.28% US$. The current dividend yield is 2.33% based on dividends of $1.44 and a stock price of $61.84 US$. The current yield is some 29% below the historical median yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 2.31 US$. The current ratio is 5.23 based on a stock price of $61.84, 2019 Revenue estimate of $5,933M and Revenue per Share of $11.83 in US$. The current ratio is some 127% above the 10 year median ratio.

Results of stock price testing is that the stock price is probably expensive. All my stock price testing is showing the stock to be relatively expensive.

A big problem is that EPS was higher in the past. However, for both 2017 and 2018, a big part of EPS came from discontinued operations. For 2018 the break was $0.27 for continued operations and $5.64 for discontinued operations. For 2017 the break was $0.88 for continued operations and $1.06 for discontinued operations. Another thing is that the EPS estimates and Net Income estimates do not even come close to matching up. On the other hand, all the stock price testing I did show that the stock price is relatively expensive.

When I look at analysts’ recommendations, I find Buy (7) and Hold (9) recommendations. The consensus would be a Hold. The 12 month stock price consensus is $58.33 US$ or $78.51 CDN$. For Canadians this implies a total loss of 2.13% with a capital loss of 4.49% and dividends of 2.36%.

See what analysts are saying on Stock Chase. They think it has risen too fast and is currently rather expensive. Amy Legate-Wolfe on Motley Fool thinks it is a steady stock with decent dividends. A writer on Simply Wall Street finds the ROCE of this company uninspiring. David Scanlan in an article on Financial Post says that the company is returning to its roots. David Jagielski on Bay Street thinks it is time to sell this stock.

Thomson Reuters Corp is the result of the $17.6 billion megamergers of Canada's Thomson and the United Kingdom's Reuters Group in 2008. It has three main segments: financial and risk (54% of revenue), legal (30% of revenue), and tax and accounting (13% of revenue). Its web site is here Thomson Reuters Corp.

The last stock I wrote about was about WSP Global Inc. (TSX-WSP, OTC-WSPOF) ... learn more. The next stock I will write about will be McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more on Friday, May 3, 2019 around 5 pm. Tomorrow on my other blog I will write about Gluskin Sheff.... learn more on May 02, 2019 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.
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Investment Talk by Spbrunner - 2w ago
Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. Stock price is reasonable to expensive. Dividend Payout Ratios are going down. I will be happier with this stock when dividends are increased but so far I have had a great total return. See my spreadsheet on WSP Global Inc.

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

When I was updating my spreadsheet, I noticed they still have not increase the dividends. This company used to be an income trust. Income Trust have higher possible distributions available for dividends. As an income trust they increased their dividends. Since becoming a corporation there has been no dividend increases.

So, the dividend has been flat since 2009. In 2009 they were paying more than their EPS in dividends, but the Dividend Payout Ratio have been coming down and for 2018, it was 63% and is expected to be 45% in 2019. On their site they say that dividend is appropriate based on the Company’s current earnings and financial requirements for the Company's operations.

The current dividend yield is moderate. It has mostly been moderate, but as an income trust the yield, in the past, went as high as 7.9%. The current yield is 2.07%. The 5, 10 and historical yields are all moderate at 3.56%, 4.86% and 4.74%. Since becoming a corporation, the median yield is 4.04%. If they do not raise the dividends, the yield will probably continue to drop.

The current Dividend Payout Ratios are fine. The DPR for EPS for 2018 is 63% with 5 year coverage at 79%. The DPR for EPS has been dropping since this company changed into a corporation. The DPR for 2018 for CFPS is 285 with 5 year coverage at 38%. This DPR is dropping also.

Debt Ratios are fine with some vulnerability concerning the Liquidity Ratio. The Long Term Debt/Market Cap Ratio is good at 0.24. The Liquidity Ratio is low at 1.24 with 5 year ratio at 1.26. If you add in cash flow after dividends it is still low at 1.44 with 5 year median ratio at 1.36. I prefer this ratio to be at least 1.50 for the sake of safety. The Debt Ratio is good at 1.72 with a 5 year median at 1.83. Leverage and Debt/Equity Ratios are fine at 2.38 and 1.38 respectively. The 10 year median ratios are 2.04 and 1.04.

The Total Return per year is shown below for years of 5 to 13 to the end of 2018. 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 charts below.

I have made a total return of 21.74% on this stock with 17.62% from capital gains and 4.12% from dividends. The dividend portion of the total return will go down in the future.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 0.00% 17.02% 13.22% 3.80%
2008 10 2.21% 13.45% 8.82% 4.64%
2005 13 9.28% 21.44% 14.58% 6.86%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 20.97, 24.87 and 28.77. The corresponding 10 year median ratios are 16.01, 20.03 and 23.99. The corresponding historical ratios are 15.50, 19.46 and 23.42. The current P/E Ratio is 21.50 based on a stock price of $72.46 and 2019 EPS estimate of $3.37. This stock price testing suggests that the stock price is relatively reasonable and around the median.

I get a Graham Price of $48.64. The 10 year low, median, and high median Price/Graham Price Ratios are 0.95, 1.13 and 1.33. The current P/GP Ratio is 1.49 based on a stock price of $72.46. This stock price testing suggests that the stock is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 1.53. The current P/B Ratio is 2.32 based on a stock price of $72.46, Book Value of $3,259M, and Book Value per Share of $31.20. The current ratio is some 51% higher than the 10 year ratio. This stock price testing suggests that the stock is relatively expensive.

I get an historical median dividend yield of 4.74% and a median yield of $4.04% since it changed to a corporation. The current dividend yield is 2.07% based on dividends of $1.50 and a stock price of $72.46. The current yield is some 56% and 49% below these medians. This stock price testing suggests that the stock is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.09. The current P/S Ratio is 1.10 based on a stock price of $72.46, 2019 Revenue estimate of $6,872M and Revenue per Share of $65.80. The current ratio is 1.2% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable and around the median.

Results of stock price testing is reasonable to expensive. As always, you cannot ignore the P/S Ratio and this is showing that the stock price is relatively reasonable and around the median. This is also showing up in the P/E Ratio test, but the P/E Ratios are rather high. The one to be concerned about is the P/B Ratio. Book Value is basically increased by retained earnings. A good P/B Ratio is 1.50 and this stock has one of 2.32. It is not that high but it is getting high.

When I look at analysts’ recommendations, I find Buy (7) and Hold (5) recommendations. The consensus would be a Buy. The 12 month stock price consensus is $77.79. This implies a total return of $9.43% with 7.36% from capital gains and 2.07% from dividends based on a current stock price of $72.46.

See what analysts are saying on Stock Chase. They like the company but some think the price is currently too high. Christopher Liew on Motley Fool has a positive view of this stock. A writer on Simply Wall Street thinks that the ROCE for this company looks good. There is some interesting information on future trends for this tock on Wallet Investor. The company released its three year Global Strategic Plan on Global Newswire.

WSP Global Inc provides engineering and consulting services for transportation, buildings, energy, and other end markets. It operates in four business areas: transportation and infrastructure (approximately half of total sales), property and buildings; environment; and industrial and energy. The company designs and manages networks for rail, aviation, roads, ports, and other systems related to transportation. Its web site is here WSP Global Inc.

The last stock I wrote about was about was Fortis Inc. (TSX-FTS, OTC-FRTSF) ... learn more. The next stock I will write about will be Thomson Reuters Corp. (TSX-TRI, NYSE-TRI) ... learn more on Wednesday, May 1, 2019 around 5 pm. Tomorrow on my other blog I will write about Dividend Yield Testing.... learn more on Tuesday, April 30, 2019 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.
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Investment Talk by Spbrunner - 3w ago
Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Revenue per Share is not currently growing well. Results of stock price testing is that the stock price is probably on the high side but not at an excessive price. There is vulnerability with some debt ratios. See my spreadsheet on Fortis Inc.

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

When I was updating my spreadsheet, I noticed that Revenue has been increasing well, but not Revenue per Share. For example, Revenue is up by 15.70% and 7.95% per year over the past 5 and 10 years. However, it is up by only 0.62% and is down by 1.63% per year over the past 5 and 10 years for Revenue per share.

For Revenue if, you look at 5 year running averages over the past 5 and 10 year, it is up by 13.72% and 12.81% per year. However, if you look at Revenue per Share and 5 year running averages, but it is down by 0.07% and up by 2.15% per year.

The above shows that revenue is not really growing. The difference between Revenue and Revenue per Share is because of the increase in shares over the past 5 and 10 years. The outstanding shares have increased by 14.99% and 9.745 per year over the past 5 and 10 years. There is nothing wrong with a company issuing new shares to raise money. But when you look for growth on this companies, you need to refer to per share values to see if there is growth.

The dividend yield for this company is moderate (2% to 4% range) and the increase in dividends is generally low (below 8%). The current dividend yield is 3.65%. The 5, 10 and historical median dividend yields are 3.34%, 3.38% and 4.04%. The dividend growth rates are shown in the table below.

The Dividend Payout Ratios are fine. The DPR for EPS for 2018 is 66.6% with 5 year coverage at 70%. The DPR for CFPS for 2018 is 24.5% with 5 year coverage at 28%.

Some debt ratios make the stock vulnerable. The Long Term Debt/Market Cap Ratio is too high at 1.19 for 2018. It has been above 1.00 for the last 4 years. This is a vulnerability. The Debt Ratio is fine at 1.53 with 5 year median at 1.53 also. The Leverage and Debt/Equity Ratios are fine at 2.87 and 1.87 with 5 year medians at 2.89 and 1.89. These are typical for utilities.

The Liquidity Ratio for 2018 is 0.77. This means that the current assets cannot cover the current liabilities. If you add in cash flow after dividends, it rises to 1.21. If you want a good one you have to add back in the current portion of the long term debt. This is a vulnerability for the company. It depends on cash flow to pay current liabilities. This is common with a lot of utility stocks. However, I would be happier if the ratio after adding in cash flow after dividends was at least 1.50.

On the other hand, the current liabilities are very low when compared to the assets of the company. The Asset/Current Liability ratio is 12.48. This is a good ratio.

The Total Return per year is shown below for years of 5 to 37 to the end of 2018. 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 charts below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 6.83% 12.57% 8.37% 4.20%
2008 10 5.60% 10.17% 6.15% 4.02%
2003 15 8.32% 12.11% 7.81% 4.29%
1998 20 6.95% 12.47% 8.11% 4.36%
1993 25 6.18% 12.11% 7.66% 4.45%
1988 30 5.78% 12.56% 7.62% 4.94%
1983 35 5.93% 12.45% 7.32% 5.13%
1981 37 6.22% 13.47% 7.69% 5.78%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.69, 19.36 and 21.03. The corresponding 10 year ratios are 16.97, 18.61 and 20.50. The corresponding historical ratios are 11.70. 13.23, and 14.76. The current P/E Ratio is 18.56 based on a stock price of $49.37 and 2019 EPS estimate of $2.66. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $49.37. The 10 year low, median, and high median Price/Graham Price Ratios are 0.99, 1.20 and 1.20. The current P/GP Ratio is 1.08 based on a stock price of $49.37. 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 1.41. The current P/B Ratio is 1.42 based on Book Value of $14,910M, Book Value per Share of $34.80 and a stock price of $49.37. The current ratio is 0.5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and at the median.

I get an historical median dividend yield of 4.04%. This current dividend yield is 3.65% based on a stock price of $49.37 and dividends of $1.80. The current yield is 9.8% below the historical yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 1.72. The current ratio is 2.29 based on a stock price of $49.37, Revenue estimate for 2019 of $9,246M, and Revenue per share of $21.58. The current ratio is 33% higher the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably on the high side but not at an excessive price. The P/S Ratio cannot be ignored and it is showing that the stock price is relatively expensive. The dividend yield is also saying that the stock price is above the median. The P/B Ratio testing is showing that the stock price is around the median.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (6), and Hold (6). The consensus would be a buy. The 12 month stock price consensus is $51.54. This implies a total return of 8.04% with 4.40% from capital gains and 3.65% from dividends.

See what analysts are saying about this stock on Stock Chase. Some said they liked AQN better. Joey Frenette on Motley Fool thinks this is a good stock to hold forever. Kay Ng on Motley Fool thinks that at 20 times earnings Fortis price is too high. A writer on Simply Wall Street says that ROCE for Fortis is normal for other utilities, it is too low for an investment. Michael Massai on Hermann Herald says that the company has a Piotroski F-Score of 7 which is good. The Blogger Dividend Earner likes this stock as a safe investment.

Fortis owns and operates utility transmission and distribution assets in Canada and the United States, serving more than 2.5 million electricity and gas customers. The company has smaller stakes in electricity generation and several Caribbean utilities. ITC operates electric transmission in eight U.S. states, with more than 16,000 miles of high-voltage transmission lines in operation. Its web site is here Fortis Inc.

The last stock I wrote about was about was SNC-Lavalin Group Inc (TSX-SNC, OTC-SNCAF) ... learn more. The next stock I will write about will be WSP Global Inc. (TSX-WSP, OTC-WSPOF) ... learn more on Monday, April 29, 2019 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.
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