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Investment Q&A

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Q: HI Guys

I know you were asked a recent question about Arcadian Timber but Just wanted some clarity. On the recent question you said " In the last year, ADN saw it's price see a slight drawdown, but total return was up by 3%. ADN continues to be a solid dividend payer with a yield of 7.14% while payout ratio is quite good at 37.36%. "

Today with their earning report they stated the dividend payout ratio for the year ending December 2023 was 132%, but 99% with the DRIP. and "Adjusted EBITDA for the year was $20.6 million, compared to $18.2 million in 2022. Acadian generated $15.0 million of Free Cash Flow during the year, compared to $12.2 million in 2022, and declared dividends of $19.8 million or $1.16 per share to our shareholders. Acadian's balance sheet remains solid with $14.8 million of net liquidity as at December 31, 2023, which includes funds available under our credit facilities."

So just wondering about how much extra funds they generate/accumulate beyond the dividend and the security of the dividend going forward. Aren't they at a level that is somewhat worrying if there was a further downturn in the lumber industry?

By the way I am a long time holder of this stock.

Thanks so much

Stuart
Read Answer Asked by Stuart on February 08, 2024
Q: hi,
im seeing a very high P/E on CSU right now. can you compare the current P/E and the forward P/E with historical averages. If possible can you include the ranges for these ( ie highest and lowest historically). can you comment on your thoughts about the current and future P/E being reasonable or not, and why? finally, are you comfortable punching shares at this price?
cheers, Chris
Read Answer Asked by chris on February 06, 2024
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