Q: Hi Peter and 5i,
Loblaw's is up YTD 40% and 1 year 56%. I keep thinking about taking a bit of money off the table here.
Then I review their financial metrics - ROIC-up, EPS-up, Margins - improving, Dividend growth - stellar, Payout ratio - low, Price/EPS - current is basically the same as historical averages, share count - decreasing since 2014.
Am I missing anything here with regards to the current valuations as compared to their historicals. Is this just a company that is firing on a cylinders (despite the news headlines) with their grocery, Shoppers and PC Financial products. Love PC optimum and their Insiders Credit Card!
Thanks for your always great feedback.
Loblaw's is up YTD 40% and 1 year 56%. I keep thinking about taking a bit of money off the table here.
Then I review their financial metrics - ROIC-up, EPS-up, Margins - improving, Dividend growth - stellar, Payout ratio - low, Price/EPS - current is basically the same as historical averages, share count - decreasing since 2014.
Am I missing anything here with regards to the current valuations as compared to their historicals. Is this just a company that is firing on a cylinders (despite the news headlines) with their grocery, Shoppers and PC Financial products. Love PC optimum and their Insiders Credit Card!
Thanks for your always great feedback.
5i Research Answer:
Sorry for the delay on this one. We agree and think L is one of the highest quality names in the...