I do not own this stock of Sylogist Ltd (TSX-SYZ, OTC-SYZLF). I learned about this stock from the CanTech newsletter I subscribe to.
When I was updating my spreadsheet, I noticed that there was a lot of selling last year (2.11%), but this year there is insider buying (0.40%). Usually, Net Insider Selling or Net Insider Buying is at 0.01 or 0.02%, so these values are high. The financial year ends in September each year so the last financial statement is dated September 30, 2018.
The dividend yields are moderate with moderate to high dividend growth. The dividends have only been paid since 2010 or for 8 years. The 5 year and 8 year dividend yields are 2.88% and 3.01%. The last dividend increase was at the end of 2018 (but in the 2019 financial year) for 18.8%. They have also paid out special dividends
They do appear to be paying out more than they should in a conventional sense. However, they do have lots of cash on hand so in that sense they can afford what dividends they are paying. The DPRs for The Dividend Payout Ratio for both EPS and CFPS are high with even the DPS for CFPS over 100% in the past. The DPRs for 2018 seem to be some of the best so far.
The DPR for EPS in 2018 was 55% with 5 year coverage at 93%. If you include the special dividend, the DPR for EPS for 2018 is 64% with 5 year coverage at 112%. The DPR for CFPS for 2018 is 48% with 5 year coverage at 63%.
Debt Ratios are great. The company has no Long Term Debt, so the Long Term Debt/Market Cap Ratio is 0. The Liquidity Ratio for 2018 is 2.50 with 5 year median at 3.10. The Debt Ratio is 3.44 in 2018 with 5 year median at 3.97. The Leverage and Debt/Equity Ratios for 2018 are 1.41 and 0.41 respectively with 5 year medians at 1.34 and 0.34.
The Total Return per year is shown below for years of 5 to 20 to the end of 2018. 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 charts below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | 14.17% | 16.66% | 13.07% | 3.59% |
| 2008 | 10 | 22.28% | 52.51% | 42.99% | 9.52% |
| 2003 | 15 | 34.47% | 30.91% | 3.55% | |
| 1998 | 20 | 2.78% | 1.92% | 0.86% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.94, 54.38 and 42.88. The corresponding 10 year ratios are 16.12, 23.27 and 31.85. The corresponding historical ratios are 3.90, 10.11 and 16.33. The current P/E Ratio is 22.81 based on a stock price of $13.23 and 2019 EPS estimate of $0.53. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $5.05. The 10 year low, median, and high median Price/Graham Price Ratios are 1.61, 2.36 and 2.87. The current P/GP Ratio is 2.62 based on a stock price of $13.23. This stock price testing suggests that the stock price is relatively reasonable, but above the median.
I get a 10 year median Price/Book Value per Share Ratio of 3.68. The current P/B Ratio is 6.76 based on a Book Value of $43.5M, Book Value per Share of $1.96 and a stock price of $13.23. The current ratio is some 84% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 3.01%. The current dividend yield is 2.87% which is 4.6% above the historical median. The current yield is based on dividends of $0.38 and a stock price of $13.23. 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 5.96. The current P/S Ratio is 7.24 based on 2019 Revenue estimate of $40.6M, Revenue per Share of $1.83 and a stock price of $13.23. The current ratio is some 21.3% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.
Both the standard and good tests of P/B Ratio and P/S Ratio says that the stock price is expensive. In this case on an absolute basis a P/B Ratio of 6.76 is quite a high one. The P/S Ratios are much more sector dependent. This would suggest that the current stock price is on the high side. On the other hand, this company might be considered to be a fast growing tech company. So, it might be a good short term buy but it is not a good long term buy.
When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (1). The consensus would be a Strong Buy. The consensus 12 month target price is $17.00. This implies a total return of $31.37% with 2.87% from dividends and 28.50% from capital gains.
See what analysts are saying about this stock on Stock Chase. Few analysts follow this stock, but they do like it. Mat Litalien at Motley Fool thinks this stock is a little gem. Kayla Ward on Simply Wall Street talks about talks about insider buying at this company. The company announces fourth quarterly results on News Wire. William Tyler on X News Press says that two analysts have set target prices on this stock.
Sylogist Ltd is a technology and licensing company which, through strategic acquisitions, investments, and operations management, provides intellectual property solutions to public and private sector customers. Its web site is here Sylogist Ltd.
The last stock I wrote about was about was Transcontinental Inc (TSX-TCL, OTC-TCLAF) ... learn more. The next stock I will write about will be Enghouse Systems Ltd (TSX-ENGH, OTC-EGHSF) ... learn more on Monday, January 28, 2019 around 5 pm.
Also, on my book blog I have put a review of the book Energy and Civilization by Vaclav Smil learn more...
This blog is meant for educational purposes only and is not to provide investment advice. 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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