Alaris Equity Partners Income Trust
Sound bite for Twitter is: Dividend Growth Financial. Results of stock price testing is that the stock price is probably reasonable. I would say it is a Buy. Debt Ratios are good. The Dividend Payout Ratios (DPR) are rather high, but they are an open-ended Trust. The current dividend yield is good with dividend growth low. See my spreadsheet on Alaris Equity Partners Income Trust.
Is it a good company at a reasonable price? I bought this stock for my TFSA account, which is basically my fooling around money. I have made a reasonable return on this stock. It is an interesting stock with the majority of the total return from dividends and little in capital gains. The stock is testing as reasonable; however, I do advise caution as it is close to its recent peak. Generally, you should not buy stocks at or near any peak.
I own this stock of Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF). I own this stock of Alaris Equity
share. In December 2025, after 10 years you would have received $615.87 in dividends. The stock would be worth $884.94. Your total return would have been $1,500.81. This would be a total return of 5.19% per year with 1.32% from capital loss and 6.50% from dividends.
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| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $23.50 | $1,010.50 | 43 | 10 | $615.87 | $884.94 | $1,500.81 |
The current dividend yield is good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 6.62%. The 5, 10 and historical dividend yields are high (7% and above) at 7.46%, 7.68% and 7.47%. The dividend growth is low (below 8% per year) at 3.4% per year over the past 5 years. The last dividend increase was in 2026 and it was for 8.8%.
The Dividend Payout Ratios (DPR) are rather high, but they are an open-ended Trust. The DPR for 2025 for Earnings per Share (EPS) is high at 78% with 5 year coverage at 42%. The DPR for 2025 for Cash Flow per Share (CFPS) is non-calculable due to negative cash flows with 5 year coverage too high at 80%. The DPR for 2025 for Free Cash Flow (FCF) is non-calculable due to negative FCF with 5 year coverage too high at 109%. FCF varies in 2025 from 129M to a negative $125M. I used the negative $125M. However, this company is an open-ended Trust, so they can afford to pay out a high portion of Earnings in Dividends.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 77.71% | 42.47% |
| CFPS | -54.40% | 79.91% |
| FCF | -49.63% | 109.48% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.28 and currently at 0.28. The Liquidity Ratio for 2025 is good at 1.63 and 1.63 currently. The Debt Ratio for 2025 is good at 4.79 and 4.79 currently. The Leverage and Debt/Equity Ratios for 2025 are good at 1.26 and 0.26 and currently at 1.26 and 0.26.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.28 | 0.26 |
| Intang/GW | 0.00 | 0.00 |
| Liquidity | 1.63 | 1.63 |
| Liq. + CF | 0.19 | 8.32 |
| Liq. + CF+D | 2.60 | 2.93 |
| Debt Ratio | 4.79 | 4.79 |
| Leverage | 1.26 | 1.26 |
| D/E Ratio | 0.26 | 0.26 |
The Total Return per year is shown below for years of 5 to 18 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 3.41% | 14.22% | 6.37% | 7.85% |
| 2015 | 10 | -1.33% | 5.19% | -1.32% | 6.50% |
| 2010 | 15 | 2.57% | 13.57% | 3.87% | 9.70% |
| 2006 | 18 | 2.00% | 12.82% | 4.09% | 8.73% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 4.73, 5.67 and 6.60. The corresponding 10 year ratios are 9.85, 11.01 and 12.15. The corresponding historical ratios are 9.92, 12.40 and 14.28. The current ratio is 10.80 based on a stock price of $22.36 and EPS estimate for 2026 of $2.07. The current ratio is between the low and median ratios of the 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $33.98. The 10-year low, median, and high median Price/Graham Price Ratios are 0.50, 0.67 and 0.74. The current P/GP Ratio is 0.66 based on a stock price of $22.36. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 0.98. The current ratio is 0.90 based on a Book Value of $1,124M, Book Value per Share of $24.79 and a stock price of $22.36. The current ratio is 8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I also have a Book Value per Share estimate for 2026 of $25.89. This implies a current ratio of 0.86 with a stock price of $22.36 and Book Value of $1,1734M. This ratio is 12% below the current ratio of 0.98. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 8.54. The current P/CF Ratio is 8.36 based on Cash Flow per Share estimate for 2026 of $2.68, Cash Flow of $121.3M and a stock price of $22.36. The current ratio is 2% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get an historical median dividend yield of 7.47%. The current dividend yield is 6.62% based on dividends of $1.48 and a stock price of $22.36. The current dividend yield is 11% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median dividend yield of 7.68%. The current dividend yield is 6.62% based on dividends of $1.48 and a stock price of $22.36. The current dividend yield is 14% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10-year median Price/Sales (Revenue) Ratio is 5.24. The current P/S Ratio is 4.87 based on Revenue estimate for 2026 of $208M, Revenue per Share of $4.59 and a stock price of $22.36. The current ratio is 7% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably reasonable. I would say it is a Buy. The dividend yield testing says the stock price is reasonable, but above the median. The P/S Ratio testing is the stock price is reasonable and below the median. The rest of the testing is saying that the stock price is reasonable and below the median.
When I look at analysts’ recommendations, I find Strong Buy (3), Buy (4) and Hold (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $26.69 with a high of $29.00 and low of $24.00. The stock price consensus of $26.69 implies a total return of 25.98% with 19.36% from capital gains and 6.62% from dividends based on a current stock price of $22.36.
Interesting comments for 2025 on Stock Chase. One analyst says it is his top pick because of exposure to Private Equity and a decent yield. The other analyst say Do Not Buy because they pay out most of their profits in distributions and retaining little for capital growth. Amy Legate-Wolfe on Motley Fool likes that this company produces a dependable income stream. Daniel Da Costa on Motley Fool likes this stock because it is a high-yield income stock with potential to grow their dividend payments. The company put out a Press Release about their fourth quarter of 2025 results.
Simply Wall Street via Yahoo Finance talks about Canaccord’s moving the value of the stock from $26.71 to $26.50 and what people thought about that.
Alaris Equity Partners Income Trust is an open-ended trust. The Trust, through its subsidiaries, indirectly provides alternative financing to private companies (Partners) in exchange for distributions with the principal objective of generating stable and predictable cash flows for payment of distributions to unitholders of the Trust. Its web site is here Alaris Equity Partners Income Trust.
The last stock I wrote about was about was Sun Life Financial Inc (TSX-SLF, NYSE-SLF) … learn more. The next stock I will write about will be Supremex Inc (TSX-SXP, OTC-SUMXF) … learn more on Friday, April 24, 2025 around 5 pm. Tomorrow on my other blog I will write about Canadian Life Insurers from Amber Kanwar…. learn more on Thursday, April 23 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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