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Becker Milk

TSX:BEK.B
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BEK.B
TSX
CA$21M
Market Cap
  1. Home
  2. CA
  3. Real Estate
Company description

The Becker Milk Company Limited owns and manages retail commercial properties primarily in Ontario, Canada. The last earnings update was 23 days ago. More info.


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BEK.B Share Price and Events
7 Day Returns
0.9%
TSX:BEK.B
-3.9%
CA Real Estate
-0.1%
CA Market
1 Year Returns
-17.9%
TSX:BEK.B
-11.8%
CA Real Estate
-24.6%
CA Market
BEK.B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Becker Milk (BEK.B) 0.9% -13.3% -17% -17.9% -27.1% -36.1%
CA Real Estate -3.9% -26% -22.4% -11.8% 1.5% 4.7%
CA Market -0.1% -21.2% -24.7% -24.6% -22.1% -16.5%
1 Year Return vs Industry and Market
  • BEK.B underperformed the Real Estate industry which returned -11.8% over the past year.
  • BEK.B outperformed the Market in Canada which returned -24.6% over the past year.
Price Volatility
BEK.B
Industry
5yr Volatility vs Market

BEK.B Value

 Is Becker Milk undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Becker Milk to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Becker Milk.

TSX:BEK.B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2020-01-31) in CAD CA$ .800000
Payout Ratio Company Filings (2020-01-31) 6903.2%
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:BEK.B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.974 (1 + (1- 26.5%) (0%))
1.313
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.313 * 5.44%)
8.58%

Discounted Cash Flow Calculation for TSX:BEK.B using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Becker Milk is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

TSX:BEK.B Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= CA$0.8 / (8.58% - 1.44%)
CA$11.2
TSX:BEK.B Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$11.20
Current discount Discount to share price of CA$11.50
= -1 x (CA$11.50 - CA$11.20) / CA$11.20
-2.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Becker Milk is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Becker Milk's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Becker Milk's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:BEK.B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2020-01-31) in CAD CA$0.74
TSX:BEK.B Share Price ** TSX (2020-04-03) in CAD CA$11.5
Canada Real Estate Industry PE Ratio Median Figure of 20 Publicly-Listed Real Estate Companies 10.47x
Canada Market PE Ratio Median Figure of 497 Publicly-Listed Companies 10.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Becker Milk.

TSX:BEK.B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:BEK.B Share Price ÷ EPS (both in CAD)

= 11.5 ÷ 0.74

15.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Becker Milk is overvalued based on earnings compared to the CA Real Estate industry average.
  • Becker Milk is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Becker Milk's expected growth come at a high price?
Raw Data
TSX:BEK.B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
North America Real Estate Industry PEG Ratio Median Figure of 14 Publicly-Listed Real Estate Companies 0.58x
Canada Market PEG Ratio Median Figure of 233 Publicly-Listed Companies 0.67x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Becker Milk, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Becker Milk's assets?
Raw Data
TSX:BEK.B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2020-01-31) in CAD CA$17.01
TSX:BEK.B Share Price * TSX (2020-04-03) in CAD CA$11.5
Canada Real Estate Industry PB Ratio Median Figure of 37 Publicly-Listed Real Estate Companies 0.62x
Canada Market PB Ratio Median Figure of 2,356 Publicly-Listed Companies 0.98x
TSX:BEK.B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:BEK.B Share Price ÷ Book Value per Share (both in CAD)

= 11.5 ÷ 17.01

0.68x

* Primary Listing of Becker Milk.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Becker Milk is overvalued based on assets compared to the CA Real Estate industry average.
X
Value checks
We assess Becker Milk's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Becker Milk has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BEK.B Future Performance

 How is Becker Milk expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Becker Milk has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.8%
Expected Real Estate industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Becker Milk expected to grow at an attractive rate?
  • Unable to compare Becker Milk's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Becker Milk's earnings growth to the Canada market average as no estimate data is available.
  • Unable to compare Becker Milk's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
TSX:BEK.B Future Growth Rates Data Sources
Data Point Source Value (per year)
North America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 21.8%
Canada Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:BEK.B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:BEK.B Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2020-01-31 3 1 1
2019-10-31 3 1 1
2019-07-31 3 1 1
2019-04-30 3 1 1
2019-01-31 3 1 2
2018-10-31 3 1 2
2018-07-31 3 1 2
2018-04-30 3 1 2
2018-01-31 3 1 3
2017-10-31 4 1 3
2017-07-31 4 1 3
2017-04-30 4 1 2

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Becker Milk is high growth as no earnings estimate data is available.
  • Unable to determine if Becker Milk is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:BEK.B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Becker Milk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:BEK.B Past Financials Data
Date (Data in CAD Millions) EPS *
2020-01-31 0.74
2019-10-31 0.75
2019-07-31 0.78
2019-04-30 0.72
2019-01-31 1.13
2018-10-31 1.15
2018-07-31 1.16
2018-04-30 1.35
2018-01-31 1.66
2017-10-31 1.45
2017-07-31 1.43
2017-04-30 1.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Becker Milk will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Becker Milk's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Becker Milk's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Real Estate companies here
  3. Becker Milk's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Becker Milk's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Becker Milk has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BEK.B Past Performance

  How has Becker Milk performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Becker Milk's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Becker Milk's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Becker Milk's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Becker Milk's 1-year earnings growth is negative, it can't be compared to the CA Real Estate industry average.
Earnings and Revenue History
Becker Milk's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Becker Milk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:BEK.B Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2020-01-31 3.16 1.35 1.18
2019-10-31 3.11 1.35 1.22
2019-07-31 3.06 1.41 1.22
2019-04-30 3.04 1.31 1.21
2019-01-31 2.93 2.05 1.20
2018-10-31 3.02 2.08 1.17
2018-07-31 3.12 2.10 1.16
2018-04-30 3.25 2.45 1.14
2018-01-31 3.39 3.01 1.16
2017-10-31 3.50 2.63 1.21
2017-07-31 3.61 2.59 1.26
2017-04-30 3.66 2.25 1.32
2017-01-31 3.58 2.12 1.31
2016-10-31 3.65 2.55 1.24
2016-07-31 3.71 2.56 1.20
2016-04-30 3.77 2.70 1.17
2016-01-31 3.96 1.66 1.14
2015-10-31 4.00 1.87 1.12
2015-07-31 3.97 1.94 1.12
2015-04-30 3.95 1.83 1.16
2015-01-31 3.92 0.85 1.18
2014-10-31 3.87 0.25 1.18
2014-07-31 3.89 0.06 1.18
2014-04-30 3.89 0.16 1.16
2014-01-31 3.94 0.75 1.13
2013-10-31 3.95 1.41 1.13
2013-07-31 3.98 1.41 1.12
2013-04-30 4.02 0.99 1.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Becker Milk has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Becker Milk used its assets less efficiently than the CA Real Estate industry average last year based on Return on Assets.
  • Becker Milk's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Becker Milk's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Becker Milk has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BEK.B Health

 How is Becker Milk's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Becker Milk's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Becker Milk is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Becker Milk's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Becker Milk's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Becker Milk has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Becker Milk Company Filings, last reported 2 months ago.

TSX:BEK.B Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2020-01-31 30.75 0.00 1.42
2019-10-31 33.92 0.00 0.64
2019-07-31 34.46 0.00 1.38
2019-04-30 34.19 0.00 0.97
2019-01-31 34.17 0.00 0.89
2018-10-31 33.71 0.00 0.34
2018-07-31 34.10 0.00 1.48
2018-04-30 33.89 0.00 0.72
2018-01-31 33.43 0.00 3.99
2017-10-31 33.03 0.00 2.86
2017-07-31 33.44 0.00 2.79
2017-04-30 33.02 0.00 0.76
2017-01-31 31.78 0.00 1.16
2016-10-31 31.98 0.00 0.79
2016-07-31 32.31 0.00 2.53
2016-04-30 32.07 0.00 1.85
2016-01-31 31.13 0.00 2.22
2015-10-31 30.66 0.00 1.64
2015-07-31 31.16 0.00 1.91
2015-04-30 30.65 0.00 1.33
2015-01-31 30.70 0.00 1.59
2014-10-31 29.91 0.00 1.06
2014-07-31 30.14 0.00 1.45
2014-04-30 29.97 0.00 0.75
2014-01-31 30.88 0.00 1.33
2013-10-31 30.82 0.00 0.49
2013-07-31 31.35 0.00 0.92
2013-04-30 31.06 0.00 0.47
  • Becker Milk has no debt.
  • Becker Milk has not taken on any debt in the past 5 years.
  • Becker Milk has no debt, it does not need to be covered by operating cash flow.
  • Becker Milk has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Becker Milk's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Becker Milk has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BEK.B Dividends

 What is Becker Milk's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.96%
Current annual income from Becker Milk dividends.
If you bought CA$2,000 of Becker Milk shares you are expected to receive CA$139 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Becker Milk's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.7%).
  • Becker Milk's dividend is below the markets top 25% of dividend payers in Canada (8.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:BEK.B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Canada Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.4%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:BEK.B Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-03-11 0.800 6.746
2019-09-13 0.800 5.727
2019-03-15 0.800 5.837
2018-09-18 0.800 6.081
2018-03-15 0.800 5.421
2017-09-13 0.800 5.005
2017-07-17 0.800 5.046
2016-03-09 0.800 5.184
2015-09-11 0.800 5.281
2015-03-13 0.800 4.404
2014-09-11 0.800 4.693
2014-03-17 0.800 4.085
2013-09-10 0.800 4.355
2013-06-28 0.800 4.958
2013-03-15 0.700 4.598
2012-09-17 0.700 4.823
2012-03-14 0.700 5.328
2011-10-07 0.700 6.293
2011-03-11 0.600 5.588
2010-09-13 0.600 5.622
2010-03-08 0.600 5.818
2009-09-10 0.600 6.477

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Becker Milk's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Becker Milk's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Becker Milk afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Becker Milk has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BEK.B Management

 What is the CEO of Becker Milk's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Geoffrey W. Pottow
COMPENSATION CA$215,460
CEO Bio

Dr. Geoffrey W. J. Pottow, Ph.D., Eng. serves as Chairman of the Board, Chief Executive Officer and President of The Becker Milk Company Limited. Dr. Pottow has been a Director of Becker Milk Company Ltd., since 1969. He served as an Independent and Non-Independent Director at WaterFurnace Renewable Energy, Inc. (formerly, WFI Industries Ltd.) from November 7, 1997 to May 2013. Dr. Pottow holds S.Sc Hons. Engineering from London University, England, M.S. (Eng.) from Case Institute of Technology, Cleveland, Oh. and Ph.D. (Mech. Eng.) from University of Toronto, Ontario, Canada.

CEO Compensation
  • Geoffrey W.'s compensation has been consistent with company performance over the past year, both up more than 20%.
  • Geoffrey W.'s remuneration is about average for companies of similar size in Canada.
Management Team

Geoffrey W. Pottow

TITLE
Chairman
COMPENSATION
CA$215K

Brian Rattenbury

TITLE
Chief Financial Officer
COMPENSATION
CA$54K
TENURE
14.3 yrs
Board of Directors Tenure

Average tenure of the Becker Milk board of directors in years:

2.8
Average Tenure
  • The average tenure for the Becker Milk board of directors is less than 3 years, this suggests a new board.
Board of Directors

Geoffrey W. Pottow

TITLE
Chairman
COMPENSATION
CA$215K

Robert Bazos

TITLE
Vice Chairman
COMPENSATION
CA$115K

George Panos

TITLE
Independent Director
COMPENSATION
CA$26K
TENURE
22.3 yrs

George Duguay

TITLE
Independent Director
COMPENSATION
CA$27K
TENURE
2.8 yrs

Donald Stewart

TITLE
Independent Director
COMPENSATION
CA$24K
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
X
Management checks
We assess Becker Milk's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Becker Milk has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BEK.B News

Simply Wall St News

The Becker Milk Company Limited (TSE:BEK.B) Is Yielding 6.0% - But Is It A Buy?

Dividend paying stocks like The Becker Milk Company Limited (TSE:BEK.B) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … With Becker Milk yielding 6.0% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Becker Milk has grown its earnings per share at 53% per annum over the past five years. Earnings per share have been growing very rapidly, although the company is also paying out virtually all of its profit in dividends. While EPS could grow fast enough to make the dividend sustainable, in this type of situation, we'd want to pay extra attention to any fragilities in the company's balance sheet. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

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Estimating The Fair Value Of The Becker Milk Company Limited (TSE:BEK.B)

Today we will run through one way of estimating the intrinsic value of The Becker Milk Company Limited (TSE:BEK.B) by taking the expected future cash flows and discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$1.3m CA$1.4m CA$1.4m CA$1.4m CA$1.4m CA$1.5m CA$1.5m CA$1.5m CA$1.6m CA$1.6m Growth Rate Estimate Source Est @ 2.32% Est @ 2.21% Est @ 2.13% Est @ 2.08% Est @ 2.04% Est @ 2.01% Est @ 1.99% Est @ 1.98% Est @ 1.97% Est @ 1.96% Present Value (CA$, Millions) Discounted @ 8.11% CA$1.2 CA$1.2 CA$1.1 CA$1.0 CA$1.0 CA$0.9 CA$0.9 CA$0.8 CA$0.8 CA$0.7 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$9.6m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$1.6m × (1 + 1.9%) ÷ (8.1% – 1.9%) = CA$26m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$26m ÷ ( 1 + 8.1%)10 = CA$12.07m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$21.67m.

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Here's How P/E Ratios Can Help Us Understand The Becker Milk Company Limited (TSE:BEK.B)

We'll show how you can use The Becker Milk Company Limited's (TSE:BEK.B) P/E ratio to inform your assessment of the investment opportunity. … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Becker Milk: P/E of 11.68 = CA$13.23 ÷ CA$1.13 (Based on the year to January 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each CA$1 of company earnings.

Simply Wall St -

Do You Know What The Becker Milk Company Limited's (TSE:BEK.B) P/E Ratio Means?

Check out our latest analysis for Becker Milk How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Becker Milk: P/E of 11.68 = CA$13.23 ÷ CA$1.13 (Based on the trailing twelve months to January 2019.) Is A High Price-to-Earnings Ratio Good? … TSX:BEK.B Price Estimation Relative to Market, June 21st 2019 Its relatively low P/E ratio indicates that Becker Milk shareholders think it will struggle to do as well as other companies in its industry classification.

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Why Fundamental Investors Might Love The Becker Milk Company Limited (TSE:BEK.B)

Investors should not worry about BEK.B’s debt levels because the company has none! … Take a look at our free research report of analyst consensus for BEK.B’s outlook. … Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

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Is The Becker Milk Company Limited's (TSE:BEK.B) 5.7% Dividend Worth Your Time?

Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … In this case, Becker Milk likely looks attractive to investors, given its 5.7% dividend yield and a payment history of over ten years. … When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.

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Investors Who Bought Becker Milk (TSE:BEK.B) Shares Five Years Ago Are Now Down 31%

While not a mind-blowing move, it is good to see that the The Becker Milk Company Limited (TSE:BEK.B) share price has gained 12% in the last three months. … While the share price declined over five years, Becker Milk actually managed to increase EPS by an average of 22% per year. … Due to the lack of correlation between the EPS growth and the falling share price, it's worth taking a look at other metrics to try to understand the share price movement.

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What Investors Should Know About The Becker Milk Company Limited's (TSE:BEK.B) Financial Strength

The direct benefit for The Becker Milk Company Limited (TSE:BEK.B), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is BEK.B will have to adhere to stricter debt covenants and have less financial flexibility. … Does BEK.B's growth rate justify its decision for financial flexibility over lower cost of capital

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Here's What The Becker Milk Company Limited's (TSE:BEK.B) P/E Ratio Is Telling Us

We'll show how you can use The Becker Milk Company Limited's (TSE:BEK.B) P/E ratio to inform your assessment of the investment opportunity. … Becker Milk has a P/E ratio of 11.15, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

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Is The Becker Milk Company Limited (TSE:BEK.B) A Smart Pick For Income Investors?

Over the past 10 years The Becker Milk Company Limited (TSE:BEK.B) has been paying dividends to shareholders. … The company currently pays out a dividend yield of 6.0% to shareholders, making it a relatively attractive dividend stock. … Check out our latest analysis for Becker Milk

Simply Wall St -

BEK.B Company Info

Description

The Becker Milk Company Limited owns and manages retail commercial properties primarily in Ontario, Canada. As of April 30, 2019, it owned and managed 51 commercial properties, including single store sites and multi-store plazas located in Metro Toronto and the other areas of southern Ontario; and leased 58 retail stores. The company was founded in 1957 and is headquartered in Toronto, Canada.

Details
Name: The Becker Milk Company Limited
BEK.B
Exchange: TSX
Founded: 1957
CA$20,615,304
1,808,360
Website: http://
Address: The Becker Milk Company Limited
82 Richmond Street East,
Toronto,
Ontario, M5C 1P1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX BEK.B Class B Special Shares The Toronto Stock Exchange CA CAD 06. Jan 1975
OTCPK BCKM.F Class B Special Shares Pink Sheets LLC US USD 06. Jan 1975
Number of employees
Current staff
Staff numbers
4
Becker Milk employees.
Industry
Real Estate Operating Companies
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 23:32
End of day share price update: 2020/04/03 00:00
Last earnings filing: 2020/03/11
Last earnings reported: 2020/01/31
Last annual earnings reported: 2019/04/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.