The Total Return per year is shown below for years of 5 to 32 to the end of 2022 for Toromont. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2017 | 5 | 15.17% | 13.83% | 12.14% | 1.69% |
| 2012 | 10 | 12.45% | 18.64% | 16.56% | 2.07% |
| 2007 | 15 | 11.57% | 13.94% | 12.23% | 1.71% |
| 2002 | 20 | 14.02% | 16.81% | 14.67% | 2.15% |
| 1997 | 25 | 13.71% | 14.26% | 12.58% | 1.68% |
| 1992 | 30 | 13.21% | 22.24% | 18.42% | 3.82% |
| 1990 | 32 | 14.80% | 22.65% | 18.54% | 4.10% |
The Total Return per year is shown below for years of 5 to 35 to the end of 2022 for Finning. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2017 | 5 | 4.60% | 3.79% | 1.19% | 2.59% |
| 2012 | 10 | 5.43% | 5.90% | 3.20% | 2.70% |
| 2007 | 15 | 6.55% | 3.20% | 1.08% | 2.12% |
| 2002 | 20 | 11.81% | 7.48% | 4.96% | 2.52% |
| 1997 | 25 | 9.34% | 7.68% | 5.42% | 2.26% |
| 1992 | 30 | 11.07% | 11.25% | 8.32% | 2.93% |
| 1987 | 35 | 8.16% | 10.90% | 8.04% | 2.87% |
So, what about growth?
Toromont Growth for the past 5 and 10 years to the end of 2022 is below. Most growth is good except for Cash Flow for the last 5 years. Cash Flow seems to vary a lot and was down in 2022.
| Year | Item | Tot. Growth | Per Year |
|---|---|---|---|
| 5 | Revenue Growth | 80.02% | 12.48% |
| 5 | EPS Growth | 148.64% | 19.98% |
| 5 | Net Income Growth | 158.11% | 20.88% |
| 5 | Cash Flow Growth | -20.54% | -3.67% |
| 5 | Dividend Growth | 102.67% | 15.17% |
| 5 | Stock Price Growth | 77.33% | 12.14% |
| 10 | Revenue Growth | 180.71% | 10.87% |
| 10 | EPS Growth | 250.64% | 13.37% |
| 10 | Net Income Growth | 276.76% | 14.18% |
| 10 | Cash Flow Growth | 480.79% | 19.23% |
| 10 | Dividend Growth | 223.40% | 12.45% |
| 10 | Stock Price Growth | 363.08% | 16.56% |
Finning ‘s Growth for the past 5 and 10 years to the end of 2022 is below. This company has low growth in Revenue. Cash Flow seems to vary a lot here also and 2022’s Cash Flow was very low. They also have low growth in Dividends and Stock Price.
| Year | Item | Tot. Growth | Per Year |
|---|---|---|---|
| 5 | Revenue Growth | 31.13% | 5.57% |
| 5 | AEPS Growth | 138.97% | 19.03% |
| 5 | Net Income Growth | 127.60% | 17.88% |
| 5 | Cash Flow Growth | -99.65% | N/C |
| 5 | Dividend Growth | 25.23% | 4.60% |
| 5 | Stock Price Growth | 6.12% | 1.19% |
| 10 | Revenue Growth | 24.05% | 2.18% |
| 10 | AEPS Growth | 65.82% | 5.19% |
| 10 | Net Income Growth | 48.98% | 4.07% |
| 10 | Cash Flow Growth | -99.25% | N/C |
| 10 | Dividend Growth | 69.64% | 5.43% |
| 10 | Stock Price Growth | 37.00% | 3.20% |
What about Dividend Payout Ratios?
This is the Dividend Payout Ratios (DPR) for Toromont. Toromont does not have an Adjusted Earnings per Share (AEPS) value. The Earnings per Share (EPS) ratio is similar to Finning’s. I do often wonder about the value of the Free Cash Flow (FCF) as different sites have different values.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 27.79% | 31.17% |
| CFPS | 20.79% | 20.88% |
| FCF | 84.82% | 33.26% |
This is the Dividend Payout Ratios (DPR) for Finning. Finning has a lower Cash Flow per Share (CFPS) DPR than Toromont. Again, I wonder about the value of Free Cash Flow (FCF) as different sites have different values.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 28.71% | 43.08% |
| AEPS | 28.71% | 47.47% |
| CFPS | 12.24% | 17.89% |
| FCF | -82.01% | 70.98% |
Let’s look at dividend growth. I have two questions, what is the current yield on my original investment and how much of my original purchase price has been paid by dividends. It would seem from this prospective that Toromont has done better.
For Toromont, I have data for 30 years and on an original stock price from 10 years ago, the yield in 2022 would be 6.88% and 41.53% of the cost of the stock would have been paid.
| Years | Yield | Cost Cov. |
|---|---|---|
| 5 | 3.05% | 11.96% |
| 10 | 6.88% | 41.53% |
| 15 | 9.49% | 69.45% |
| 20 | 22.06% | 176.28% |
| 25 | 31.94% | 265.27% |
| 30 | 278.84% | 2352.43% |
I also have data for 30 years from Finning. on an original stock price from 10 years ago, the yield in 2022 would be 3.62% and 29.84% of the cost of the stock would have been paid.
| Years | Yield | Cost Cov. |
|---|---|---|
| 5 | 3.32% | 15.02% |
| 10 | 3.62% | 29.84% |
| 15 | 3.30% | 35.69% |
| 20 | 7.69% | 93.45% |
| 25 | 10.68% | 136.11% |
| 30 | 29.86% | 393.46% |
After this review, I am glad that I bought Toromont.
On my other blog I wrote yesterday about Chesswood Group Ltd (TSX-CHW, OTC-CHWWF) ... learn more. Next, I will write about Northland Power Inc (TSX-NPI, OTC-NPIFF) ... learn more on Friday, November 17, 2023 around 5 pm.
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