TSX:LGT.B

Stock Analysis Report

Executive Summary

Logistec Corporation, together with its subsidiaries, provides cargo handling and other services to marine, industrial, and municipal customers in Canada and the United States.

Risk Analysis

Earnings have declined by -9.29% per year over past 5 years

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (2.8%) are lower than last year (4.9%)



Snowflake Analysis

Second-rate dividend payer with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.4%

LGT.B

-0.9%

CA Infrastructure

-0.3%

CA Market


1 Year Return

-10.4%

LGT.B

-9.5%

CA Infrastructure

8.2%

CA Market

Return vs Industry: LGT.B matched the Canadian Infrastructure industry which returned -9.3% over the past year.

Return vs Market: LGT.B underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

LGT.BIndustryMarket
7 Day-2.4%-0.9%-0.3%
30 Day-4.3%0.7%1.3%
90 Day-0.4%2.4%5.2%
1 Year-9.5%-10.4%-4.1%-9.5%11.6%8.2%
3 Year14.8%11.8%-29.4%-42.7%17.8%7.1%
5 Year3.0%-1.3%-16.5%-40.2%33.1%13.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LGT.B (CA$39.1) is trading above our estimate of fair value (CA$28.99)

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


Price To Earnings Ratio

PE vs Industry: LGT.B is poor value based on its PE Ratio (27.9x) compared to the Infrastructure industry average (12.3x).

PE vs Market: LGT.B is poor value based on its PE Ratio (27.9x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LGT.B is overvalued based on its PB Ratio (1.9x) compared to the XN Infrastructure industry average (1.3x).


Next Steps

Future Growth

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

10.6%

Forecasted Transportation 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 Logistec 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 Logistec performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGT.B has a large one-off loss of CA$7.2M impacting its September 28 2019 financial results.

Growing Profit Margin: LGT.B's current net profit margins (2.8%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: LGT.B's earnings have declined by -9.3% per year over the past 5 years.

Accelerating Growth: LGT.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: LGT.B had negative earnings growth (-35.7%) over the past year, making it difficult to compare to the Infrastructure industry average (3.5%).


Return on Equity

High ROE: LGT.B's Return on Equity (6.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Logistec's financial position?


Financial Position Analysis

Short Term Liabilities: LGT.B's short term assets (CA$237.6M) exceed its short term liabilities (CA$125.3M).

Long Term Liabilities: LGT.B's short term assets (CA$237.6M) do not cover its long term liabilities (CA$362.5M).


Debt to Equity History and Analysis

Debt Level: LGT.B's debt to equity ratio (70.8%) is considered high.

Reducing Debt: LGT.B's debt to equity ratio has increased from 18.4% to 70.8% over the past 5 years.

Debt Coverage: LGT.B's debt is well covered by operating cash flow (33%).

Interest Coverage: LGT.B's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: LGT.B's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

1.09%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.9%markettop25%5.5%industryaverage3.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: LGT.B's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: LGT.B's dividend (1.05%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), LGT.B's dividend payments are 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

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

11.9yrs

Average management tenure


CEO

Madeleine Paquin (57yo)

24yrs

Tenure

CA$1,495,960

Compensation

Ms. Madeleine M. Paquin, C.M., FSCMA, has been the President and Chief Executive Officer at Logistec Corp. since January 1996. Ms. Paquin has been an Independent Director of Air Canada since May 12, 2015.  ...


CEO Compensation Analysis

Compensation vs Market: Madeleine's total compensation ($USD1.15M) is about average for companies of similar size in the Canadian market ($USD1.00M).

Compensation vs Earnings: Madeleine's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

11.9yrs

Average Tenure

Experienced Management: LGT.B's management team is seasoned and experienced (11.9 years average tenure).


Board Age and Tenure

16.0yrs

Average Tenure

65yo

Average Age

Experienced Board: LGT.B's board of directors are seasoned and experienced ( 16 years average tenure).


Insider Trading

Insider Buying: LGT.B insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$10,22520 Dec 19
George Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceCA$40.90
SellCA$10,12516 Dec 19
George Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceCA$40.50
SellCA$19,06506 Sep 19
George Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceCA$38.13
BuyCA$42,49121 May 19
Luc Villeneuve
EntityIndividual
Shares1,000
Max PriceCA$42.50

Ownership Breakdown

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


Management Team

  • Madeleine Paquin (57yo)

    President

    • Tenure: 24yrs
    • Compensation: CA$1.50m
  • Ingrid Stefancic

    VP of Corporate & Legal Services and Corporate Secretary

    • Tenure: 23yrs
  • Suzanne Paquin

    VP & Director

    • Tenure: 33yrs
  • Jean-Claude Dugas

    Chief Financial Officer

    • Tenure: 18.9yrs
    • Compensation: CA$689.12k
  • Nicole Paquin

    VP of Information Systems & Director

    • Tenure: 16yrs
  • Alain Sauriol

    President of Sanexen

    • Compensation: CA$881.55k
  • Frank Vannelli

    Senior Vice-President of Commercial & Business Development

    • Compensation: CA$744.49k
  • Rodney Corrigan

    President of Logistec Stevedoring Inc

    • Tenure: 0.9yrs
    • Compensation: CA$804.43k
  • Stéphane Blanchette

    Vice-President of Human Resources

    • Tenure: 4.8yrs
  • Marie-Chantal Savoy

    Vice-President of Strategy & Communications

    • Tenure: 2.4yrs

Board Members

  • Madeleine Paquin (57yo)

    President

    • Tenure: 24yrs
    • Compensation: CA$1.50m
  • George Jones (76yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: CA$114.00k
  • Suzanne Paquin

    VP & Director

    • Tenure: 33yrs
  • Serge Dubreuil

    Independent Director

    • Tenure: 25yrs
    • Compensation: CA$54.25k
  • George Gugelmann

    Independent Director

    • Tenure: 21yrs
    • Compensation: CA$57.25k
  • James Cherry (65yo)

    Independent Chairman

    • Tenure: 0.7yrs
    • Compensation: CA$62.50k
  • Nicole Paquin

    VP of Information Systems & Director

    • Tenure: 16yrs
  • Luc Sabbatini

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: CA$54.50k
  • J. Rodger

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: CA$54.50k
  • Curtis Foltz

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: CA$53.50k

Company Information

Logistec Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Logistec Corporation
  • Ticker: LGT.B
  • Exchange: TSX
  • Founded: 1952
  • Industry: Marine Ports and Services
  • Sector: Transportation
  • Market Cap: CA$486.038m
  • Shares outstanding: 12.78m
  • Website: https://www.logistec.com

Number of Employees


Location

  • Logistec Corporation
  • 360 St. Jacques Street
  • Suite 1500
  • Montreal
  • Quebec
  • H2Y 1P5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGT.ATSX (The Toronto Stock Exchange)Class A Common SharesCACADJan 1979
LGT.BTSX (The Toronto Stock Exchange)YesClass B Subordinated Voting SharesCACADJun 1986
LTKB.FOTCPK (Pink Sheets LLC)YesClass B Subordinated Voting SharesUSUSDJun 1986

Biography

Logistec Corporation, together with its subsidiaries, provides cargo handling and other services to marine, industrial, and municipal customers in Canada and the United States. The company operates in two segments, Marine Services and Environmental Services. The Marine Services segment provides specialized cargo handling services, which include container, bulk, breakbulk, and general and project cargo, as well as other services through the operation of 61 terminals in 37 ports in eastern North America. It specializes in handling dry cargoes, which consist of forest products, metals, dry bulk, fruit, and grain and bagged cargoes, as well as offers container stuffing and destuffing, warehousing and distribution, and other value-added services. In addition, the company provides loading and unloading of ships, trucks, and railway cars and other related operations; and port logistics. Further, it offers other marine services, including coastal transportation of cargoes to communities in the Canadian Arctic; and marine agency services to foreign shipowners and operators, as well as owns and operates five ice-class vessels. The Environmental Services segment is involved in the trenchless structural rehabilitation of underground water mains, regulated materials management, site remediation, risk assessment, and woven-hose manufacturing. It also offers turnkey solutions for the assessment of properties and the clean-up of soils, groundwater, buildings, lagoons, and underground tanks, as well as analyzes and evaluates the human and environmental risks associated with contamination issues. The company was formerly known as Quebec Terminals Ltd. and changed its name to Logistec Corporation in April 1969. Logistec Corporation was founded in 1952 and is headquartered in Montreal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/28 23:41
End of Day Share Price2020/01/28 00:00
Earnings2019/09/28
Annual Earnings2018/12/31


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.