Sound Bite for Twitter and StockTwits is: Industrial Sector Stock. The stock price is cheap. There are insider purchases. It is very speculative. It has a mixed balance of dividends and basically pays them when they are affordable. See my table on Pulse Seismic Inc..
I don’t own this Pulse Seismic Inc (TSX-PSD, OTC-PLSDF) stock. I wanted to invest a little more money in a dividend payment. I went to the Globe and Mail page from G&M and I selected the stock filter from the Globe Investor area. I asked about companies that were priced between $ 1 and $ 5.50 and had a return of between 4% and 20%. Pulse Seismic Inc. was one of the companies that were returned. This is not a stock I have invested in, but I found it of interest, so I’m chasing it.
When I updated my spreadsheet, I noticed that there were many insider purchases. The purchase is made by the CEO, CFO and Chairman. It used to be a stock with dividend growth, but in 2015 dividends were cut due to lack of earnings. However, they paid a special dividend in 2017 when they made a profit. The problem is that they serve the energy business in the west and therefore don’t earn much at the moment. The stock peaked in 2013 and has been moving south ever since.
They have a very mixed balance sheet in terms of dividends. The dividend has risen and fallen. They were suspended in 2015, but this was not the first time. They also paid a special dividend in 2017 because they made a profit this year.
The dividend payout ratio (DPR) has a mixed record. However, they suspended dividends if they couldn’t afford them. In 2017, they made a profit and paid a dividend that was 74% DPR of EPS and 19% of CFPS. Morningstar and the Wall Street Journal disagree on free cash flow. According to Morningstar, they paid 29% of the FCF in 2017.
Debt ratios are fine. The long-term debt to market cap ratio for 2019 is 0.29, and that’s a good thing. It is still good at 0.57 for a current value. The debt decreased, but so did the share price. The liquidity ratio for 2019 is 1.11, and if you add cash flow after dividends, it is 2.72. The current liquidity ratio is 0.79 and the cash flow is 1.65. The debt ratio for 2019 is 1.85. The debt to debt / equity ratio for 2019 is 2.18 and 1.18, and these are also fine.
The total return per year is shown below for years 5 through 21 through the end of 2019. The capital gain column shows the part of the total return that is attributable to capital gains. The dividend column shows the part of the total return that is attributable to dividends. See table below.
|From||Years||Div. Gth||Tot Ret||Cap Gain||Div.|
The 5-year low, median and high median price-earnings-per-share ratios are negative. The corresponding 10-year rates are also negative. The corresponding historical ratios are 2.83, 4.57 and 5.71. The current P / E ratio is 3.03 based on a share price of $ 0.91 and an EPS estimate for 2020 of $ 0.30. This stock price check suggests that the stock price is relatively reasonable and below the median.
I get a Graham price of $ 2.11. The 10-year low, median and high median price / Graham price ratios are 1.13, 1.35 and 1.59. The current P / GP ratio is 0.43 based on a stock price of $ 0.91. This stock price check suggests that the stock price is relatively cheap.
I get a 10-year average price / book value per share of 3.40. The current P / E ratio is 1.38 based on a stock price of $ 0.91, a book value of $ 35.475 million and a book value per share of $ 0.66. The current rate is 59% below the 10-year median rate. This stock price check suggests that the stock price is relatively cheap.
I get a 10-year median price / cash flow per share of 5.38. The current P / CF ratio is 8.28, based on a cash flow of $ 5.9 million for the past 12 months, a cash flow per share of $ 0.11 and a share price of $ 0.91. The current rate is 54% below the 10-year median rate. This stock price check suggests that the stock price is relatively cheap.
I can’t run dividend yield tests because the dividends have been suspended.
The 10-year average price / sales ratio is 5.25. The current P / E ratio is 4.08 based on a $ 12 million sales estimate for 2020, $ 0.22 sales per share and a $ 0.91 share price. The current rate is 22% below the 10-year median rate. This stock price check suggests that the stock price is relatively cheap.
Results of stock price tests show that the stock price is relatively cheap. The P / S ratio test shows this and is confirmed by the P / B ratio test. The P / CF test also shows this. The problem with testing the PER is all the years that losses have been made. This would also affect the Graham price, as some estimates are included in the calculation, so it may not work.
Is it a good company for a reasonable price? First, the stock price is relatively cheap. I still think this is an interesting company, and if resources ever increase, it will work well. However, it is very speculative.
When I look at the analysts’ recommendations, I find Buy (1). The consensus would be a purchase. The 12-month price target is $ 1.40. This implies a total return of 53.85% from capital gains.
This is a small company and there are only old comments too Stock chase. Share is not being tracked well. See the executive overview at Simply Wall Street. A writer on Simply Wall Street is a bit worried about this company’s debt. A writer on Simply Wall Street says the consensus on this stock has become bearish. A writer on Simply Wall Street says the CEO is paid more than the median for this size of a company. The company reports on the second quarter of 2020 on Global News Wire
Pulse Seismic Inc is a Canadian company that provides seismic data to the energy sector in western Canada. The company deals with the acquisition, marketing and licensing of seismic 2D and 3D data for the energy sector. The website is here Pulse Seismic Inc. .
The last stock I wrote about was Dorel Industries Inc (TSX-DII.B, OTC-DIIBF) … Learn more. The next stock I will write about is TECSYS Inc (TSX-TCS, OTC-TCYSF) … Learn more Monday, July 27, 2020 around 5 p.m.
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