TSX:BEK.B

Stock Analysis Report

Executive Summary

The Becker Milk Company Limited owns and manages retail commercial properties primarily in Ontario, Canada.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.

Share Price & News

How has Becker Milk's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BEK.B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

BEK.B

-4.6%

CA Real Estate

3.0%

CA Market


1 Year Return

-17.9%

BEK.B

-9.0%

CA Real Estate

-24.5%

CA Market

Return vs Industry: BEK.B underperformed the Canadian Real Estate industry which returned -11.8% over the past year.

Return vs Market: BEK.B exceeded the Canadian Market which returned -24.6% over the past year.


Shareholder returns

BEK.BIndustryMarket
7 Day0.9%-4.6%3.0%
30 Day-13.3%-26.0%-21.2%
90 Day-17.0%-21.8%-24.4%
1 Year-0.5%-17.9%-7.5%-9.0%-22.0%-24.5%
3 Year-1.6%-27.1%7.5%1.3%-13.9%-21.9%
5 Year-4.5%-36.1%33.2%4.4%-2.0%-16.6%

Price Volatility Vs. Market

How volatile is Becker Milk's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Becker Milk undervalued compared to its fair value and its price relative to the market?

15.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BEK.B (CA$11.5) is trading above our estimate of fair value (CA$11.2)

Significantly Below Fair Value: BEK.B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BEK.B is poor value based on its PE Ratio (15.4x) compared to the Real Estate industry average (10.5x).

PE vs Market: BEK.B is poor value based on its PE Ratio (15.4x) compared to the Canadian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BEK.B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BEK.B is overvalued based on its PB Ratio (0.7x) compared to the CA Real Estate industry average (0.6x).


Next Steps

Future Growth

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

72.4%

Forecasted Real Estate industry annual growth in earnings


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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Becker Milk performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEK.B has high quality earnings.

Growing Profit Margin: BEK.B's current net profit margins (42.6%) are lower than last year (70%).


Past Earnings Growth Analysis

Earnings Trend: BEK.B's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: BEK.B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BEK.B had negative earnings growth (-34.2%) over the past year, making it difficult to compare to the Real Estate industry average (-22.9%).


Return on Equity

High ROE: BEK.B's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Becker Milk's financial position?


Financial Position Analysis

Short Term Liabilities: BEK.B's short term assets (CA$2.4M) exceed its short term liabilities (CA$991.7K).

Long Term Liabilities: BEK.B's short term assets (CA$2.4M) do not cover its long term liabilities (CA$3.9M).


Debt to Equity History and Analysis

Debt Level: BEK.B is debt free.

Reducing Debt: BEK.B has not had any debt for past 5 years.

Debt Coverage: BEK.B has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BEK.B has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BEK.B has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BEK.B's debt is covered by short term assets.


Next Steps

Dividend

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

6.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BEK.B's dividend (6.96%) is higher than the bottom 25% of dividend payers in the Canadian market (2.7%).

High Dividend: BEK.B's dividend (6.96%) is low compared to the top 25% of dividend payers in the Canadian market (8.68%).


Stability and Growth of Payments

Stable Dividend: BEK.B's dividends per share have been stable in the past 10 years.

Growing Dividend: BEK.B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (107.4%), BEK.B's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average board tenure


CEO

Geoffrey W. Pottow

no data

Tenure

CA$215,460

Compensation

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., ...


CEO Compensation Analysis

Compensation vs Market: Geoffrey W.'s total compensation ($USD152.45K) is about average for companies of similar size in the Canadian market ($USD157.67K).

Compensation vs Earnings: Geoffrey W.'s compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Geoffrey W. Pottow
Chairmanno dataCA$215.46kno data
Robert Bazos
Vice Chairmanno dataCA$115.46kno data
George Panos
Independent Director22.25yrsCA$26.00kno data
George Duguay
Independent Director2.75yrsCA$27.00kno data
Donald Stewart
Independent Director1.75yrsCA$23.67kno data

2.8yrs

Average Tenure

Experienced Board: BEK.B's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Becker Milk Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Becker Milk Company Limited
  • Ticker: BEK.B
  • Exchange: TSX
  • Founded: 1957
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: CA$20.615m
  • Shares outstanding: 1.81m
  • Website: https://null

Number of Employees


Location

  • The Becker Milk Company Limited
  • 82 Richmond Street East
  • Toronto
  • Ontario
  • M5C 1P1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BEK.BTSX (The Toronto Stock Exchange)YesClass B Special SharesCACADJan 1975
BCKM.FOTCPK (Pink Sheets LLC)YesClass B Special SharesUSUSDJan 1975

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 23:32
End of Day Share Price2020/04/03 00:00
Earnings2020/01/31
Annual Earnings2019/04/30


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.