It will take 12 years' worth of dividends to get back to the previous high unless the company can grow and prosper and profits rise considerably. I have studied your recent report [thank you] on the company and it looks good and the B+ rating in encouraging but you don't really identify much strong growth as such. Selling the refinery could be a negative as it seems to be steadily profitable.
Comparing the 20 year price and dividend growth histories of companies like FTS, EMA, RY, and T for example it is hard to see PKI as being a superior investment.
So does the current price and anticipated growth merit investing in PKI at this time for a 10 year hold? Do you have that much confidence in management?
Thank you......... Paul W. K.
We can break PKI's share price into a few main sections: its expansion from 2003 to 2008, a drawdown from 2008 and flat movement till 2012, an expansion from 2012 to 2020, and again a drawdown from 2020 and flat movement till today.
The stock does have ~50% to gain until its all-time highs, but sales have shown an excellent track record of growth over the years, and dividends of ~4% are only ~15% to 20% of its total free cash flows. Debt is high, but we believe the company will work on reducing its debt load using free cash flows, it has the ability to grow organically, and we can see some levels of multiple expansion based on improving fundamentals. Selling its refinery may allow the company to become more streamlined in its business model and approach, and this may allow investors to place a higher valuation on the company with more clearly identifiable business operations. We feel that its strong fundamentals will be appreciated by the market in the coming years and that its sideways trading will not last forever.