Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The price testing is show the price to be reasonable. This company has very good debt ratios with Liquidity Ratio at 2.38 and Debt Ratio at 1.89. See my spreadsheet on Russel Metals Inc..
I own this stock of Russel Metals Inc. (TSX-RUS, OTC-RUSMF). This was a stock on Mike Higgs' Canadian Dividend Growth List. This is a dividend paying industrial stock. You would buy for diversification purposes.
This stock has done ok for me, but not one of my winners. I have had this stock for almost 11 years and my Total Return is 5.91% per year with 0.89% from capital gains and 5.02% from dividends. Not all stocks are winners and some will do better in different economic situations.
The Dividend Payout Ratio for 2017 is 76% for EPS. However 5 year coverage is at 151%. They could not cover their dividends with EPS in 2013, 2015 and 2016. The DPR for CFPS is better at 29% for 2017 and 5 year coverage 62%.
I have information on this stock going back to 1990. Between 1993 and 1999 the stock paid no dividends. That is why the dividend growth for 20 years is n/a. Dividends were also decreased in 2008. That is why the dividend growth for 10 years is a decline of 1.4% per year. See the chart below on dividend growth.
The Total Return is show below for years of 5 to 27. 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. The stock price tends to fluctuate a lot and that is why some period really outperforms other periods.
| Years | Div Gth | Tot Ret | Cap Gain | Div |
|---|---|---|---|---|
| 5 | 2.40% | 6.39% | 1.13% | 5.26% |
| 10 | -1.40% | 6.45% | 1.37% | 5.08% |
| 15 | 14.48% | 24.86% | 12.33% | 12.53% |
| 20 | n/a | 16.99% | 10.05% | 6.95% |
| 25 | 11.50% | 10.39% | 6.55% | 3.84% |
| 27 | 5.59% | 7.07% | 4.04% | 3.03% |
The 5 year low median and high median Price/Earnings per Share Ratios are 12.98, 16.09 and 19.21. The corresponding 10 year ratios are 12.49, 14.53 and 16.16. The historical corresponding ratios are 8.22, 9.93 and 12.11. The current P/E Ratio is 12.46 based on a stock price of $27.54 and 2018 EPS estimate of $2.21. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $25.77. The 10 year low, median and high median Price/Graham Price Ratios are 0.89, 1.10 and 1.29. The current P/GP Ratio is 1.07 based on a stock price of $27.54. 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 1.83. The current P/B Ratio is 2.06 based on Book Value of $827M, Book Value per Share of 13.36 and a stock price of $27.54. The current ratio is some 13% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get an historical median dividend yield of 4.91%. The current dividend yield is 5.52% based on a stock price of $27.54 and dividends of $1.52. The current yield is some 12% above the historical median. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median Price/Sales (Revenue) Ratio of 0.54. The current P/S Ratio is 0.48 based on 2018 Revenue estimate of $3,542M, Revenue per Share of $57.23 and a stock price of $27.54. The current ratio is below the 10 year median by 11%. This stock price testing suggests that the stock price is relatively reasonable and below the median.
When I look at analysts' recommendations I find just Buy (4) recommendations. The consensus would be a Buy. The 12 months stock price consensus is $35.67. This implies a total return of 35.04% with 29.52% from capital gains and 5.52% from dividends based on a current stock price of $27.34.
Ajay Mannan on Simply Wall Street talks about the company's P/E Ratio. A Herald Staff Writer on The Herald gives some statistics on this stock. Ambrose O'Callaghan of Motley Fool talks about the threat of US tariff and this company. See what analysts are saying about this stock on Stock Chase. Opinions vary on this stock.
Russel Metals Inc. is a metals distribution and processing company. It distributes steel products and conducts its distribution business in three business segments that are Metals Service Centers; Energy Products, and Steel Distribution. Its web site is here Russel Metals Inc..
The last stock I wrote about was about was Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)... learn more. The next stock I will write about will be Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF)... learn more on Monday, April 9, 2018 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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