Sound bite for Twitter is: Dividend Growth Materials. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good. The current dividend yield is moderate with dividend growth moderate. See my spreadsheet on Adentra Inc.
Is it a good company at a reasonable price? I bought this company thinking that at some point in the future it may become a backbone type stock in my portfolio. I still consider it an interesting small cap.
I own this stock of Adentra Inc (TSX-ADEN, OTC-HDIUF). In April 2017, I asked for suggestions on what stocks I should now follow because of a number that I had followed had been bought out. This was one of the suggestions. I bought the stock in 2020 as Hardwoods Distribution Inc (TSX-HDI, OTC- HDIUF). In 2022 the company changed its name to Adentra Inc (TSX-ADEN, OTC-HDIUF).
When I was updating my spreadsheet, I noticed this stock has been on a wild ride. It hit a high of $ 48.50 in 2022 and the went down to $ 22.89. It hit another high of $ 43.60 in 2024 and is currently at $ 26.18. I have had this stock for around 5 years and I have made 6.23% per year with 3.86% from capital gains and 2.37% from dividends.
It looks like there were a lot of insider sales for 2025. The reason is that some directors have left and therefore sold their shares. Of the directors I currently follow, they all have bought shares in the past year. However, shares bought because of options do not show up as insider buying.
If you had invested in this company in December 2014, for $ 1,002.24 you would have bought 87 shares at $ 11.52 per share. In December 2024, after 10 years you would have received $ 313.64 in dividends. The stock would be worth $ 3,230.31. Your total return would have been $ 3,543.95. This would be a total return of 14.17% per year with 12.42% from capital gain and 1.75% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $ 11.52 | $ 1,002.24 | 87 | 10 | $ 313.64 | $ 3,230.31 | $ 3,543.95 |
The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 2.22%. The 5, 10 and historical median dividend yields are low (below 2%) at 1.66%, 1.67% and 1.87%. The dividend growth is moderate (8% to 14% ranges per year) at 11.8% per year over the past 5 years. The last dividend increase was for 7% and it was done in 2025.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 20% with 5 year coverage at 11%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 13% with 5 year coverage at 12%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 5% with 5 year coverage at 5%. The DPR for 2024 for Free Cash Flow (FCF) is good at 4% with 5 year coverage at 5%. There is no agreement on what the FCF is.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 20.27% | 11.45% |
| AEPS | 13.10% | 11.67% |
| CFPS | 5.34% | 4.50% |
| FCF | 3.89% | 4.80% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.47 and currently at 0.44. The Liquidity Ratio for 2024 is good at 2.23 and 1.56 currently. The Debt Ratio for 2024 is good at 1.83 and 1.75 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.20 and 1.20 and currently at 2.33 and 1.33.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term | 0.47 | 0.44 |
| Intang/GW | 0.80 | 1.07 |
| Liquidity | 2.23 | 1.56 |
| Liq. + CF | 2.71 | 1.67 |
| Debt Ratio | 1.83 | 1.75 |
| Leverage | 2.20 | 2.33 |
| D/E Ratio | 1.20 | 1.33 |
The Total Return per year is shown below for years of 5 to 20 to the end of 2024 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 chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 11.84% | 19.90% | 17.90% | 2.00% |
| 2014 | 10 | 12.66% | 14.17% | 12.42% | 1.75% |
| 2009 | 15 | 0.00% | 24.31% | 21.50% | 2.81% |
| 2004 | 20 | -1.31% | 8.19% | 5.88% | 2.31% |
The Total Return per year is shown below for years of 5 to 20 to the end of 2024 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 chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 12.51% | 16.69% | 14.65% | 2.04% |
| 2014 | 10 | 11.97% | 11.55% | 9.84% | 1.71% |
| 2009 | 15 | -1.46% | 20.67% | 18.02% | 2.64% |
| 2004 | 20 | -2.25% | 7.34% | 4.82% | 2.52% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 4.52, 9.98 and 15.44. The corresponding 10 year ratios 9.14, 11.54 and 15.41. The corresponding historical ratios are 8.54, 10.53 and 14.21. The current P/E Ratio is 9.14 based on a stock price of $ 26.99 and EPS estimate for 2025 of $ 2.95 ($ 2.16 US$ ). The current ratio is at the low end of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 3.86, 8.53 and 10.46. The corresponding 10 year ratios 7.40, 9.51 and 12.24. The corresponding historical ratios are 7.19, 9.45 and 11.58. The current P/E Ratio is 9.26 based on a stock price of $ 26.99 and AEPS estimate for 2025 of $ 2.91 ($ 2.13 US$ ). The current ratio is between the low and median ratios 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $ 40.78. The 10-year low, median, and high median Price/Graham Price Ratios are 0.61, 0.77 and 1.05. The current P/GP Ratio is 0.66 based on a stock price of $ 26.99. The current ratio is at the between the low and median ratios 10 year median ratios. 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 1.21. The current P/B Ratio is 0.73 based on a stock price of $ 18.64, Book Value of 633.8M, and Book Value per Share of $ 25.37. The current ratio is 39% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$ .
I also have a Book Value per Share estimate for 2025 of $ 26.12. The estimate implies a ratio of 0.71 and a Book Value of $ 652.5M with a stock price of $ 18.64. This ratio is 41% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$ .
I get a 10-year median Price/Cash Flow per Share Ratio of 4.58. The current ratio is 8.22 based on Cash Flow per Share estimate for 2025 of $ 3.28 ($ 2.40 US$ ), Cash Flow of $ 81.99 and a stock price of $ 26.99. The current ratio is 80% 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 1.87%. The current dividend yield is 2.22% based on dividends of $ .60 and a stock price of $ 26.99. The current dividend yield is 19% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. (Note: dividends are paid in CDN$ , but financials and most estimates are in US$ .)
I get a 10 year median dividend yield of 1.57%. The current dividend yield is 2.22% based on dividends of $ .60 and a stock price of $ 26.99. The current dividend yield is 42% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. (Note: dividends are paid in CDN$ , but financials and most estimates are in US$ .)
The 10-year median Price/Sales (Revenue) Ratio is 0.30. The current P/S Ratio is 0.22 based on Revenue estimate for 2025 of $ 3,013M ($ 2,203M US$ ), Revenue per Share of $ 120.62 and a stock price of $ 26.99. The current ratio is 25% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. Note that the stock price is off its recent high.
Results of stock price testing is that the stock price is probably cheap. The 10 year dividend yield test says this. It is confirmed by the P/S Ratio test. The rest of the testing is showing that the stock price is relatively reasonable and below the median. I did my testing in CDN$ as this stock is not traded much in US$ and there is a wide spread, because of this, between CDN$ TSX trading and US$ trading.
When I look at analysts’ recommendations, I find Strong Buy (4) and Buy (5). The consensus would be a Strong Buy. The 12 month stock price consensus is $ 38.57 ($ 28.20 US$ ) with a high of $ 45.65 ($ 33.38 US$ ) and low of $ 30.50 ($ 22.30 US$ ). The consensus stock price of $ 38.57 implies a total return of 45.12% with 42.90% from capital gains and 2.22% from dividends.
There is only one analyst on Stock Chase looking at this stock. Last entry was in 2024. He says it is a well-run company. Sneha Nahata on Motley Fool thinks this stock has potential to generate good returns in the long term. Amy Legate-Wolfe on Motley Fool thinks this is a good buying opportunity for this stock. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their first quarter of 2025.
Simply Wall Street via Yahoo Finance put out a rather negative report on this stock. They did not like the fact that the company is issuing new shares and thereby diluting shareholders. Simply Wall Street via Yahoo Finance says this company is undervalued. Simply Wall Street has one warning on this stock of interest payments are not well covered by earnings.
Adentra Inc is a distributor of architectural products to fabricators, home centers and professional dealers servicing the new residential, repair and remodel, and commercial construction end markets. The company operates a network in North America of various facilities in the United States and Canada. Its web site is here Adentra Inc.
The last stock I wrote about was about was IA Financial Corp (TSX-IAG, OTC-IDLLF) … learn more. The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC-ESVIF) … learn more on Monday, June 9, 2025 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
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