Evertz Technologies

I do not own this stock (TSX-ET). I got idea to investigate this stock from a G&M Article. See G&M. It looked like something I might want to try out.

I did a spreadsheet on this stock and it does look good. The only thing is that the stock has not been listed for very long and I only have 5 years of data on it. The stock has a very nice dividend with a yield of 3.75%. The last dividend increase was for 20%. However, because of a dividend raise in the last financial year too, the dividends are up almost 28% year over year.

The Dividend Payout Ratios are good at expected rates for this year at 47% for earnings and 44% for cash flow. They are a bit higher than last years of 35% and 36%, respectively. (See my site for information on Dividend Payout Ratios). What is also important for a dividend paying small company is debt ratios and these are also very good on this stock. The company really has no debt.

The current Liquidity Ratio is 10.85 with a 5 year median of 6.76. The Asset/Liability Ratio is 10.85 with a 5 year median Ratio of 6.86. These ratios started off quite low in 2005 and 2006, but have been very good since 2007. Leverage and Debt/Equity Ratios are also good with current ratios at 1.11 and 0.11. The 5 year median ratios are 1.18 and 0.17, respectively.

The growth for Revenues, Earnings, Cash Flow and Book Value are all very good on this stock. Over the past 5 years, the revenue per share has increased by 14.4% per year. The EPS has increased at the rate of 12% per year. The Cash Flow has increased by 12% per year and the book value by 110% per year.

The stock price had peaked on this stock in 2008 and has not made it back to this peak yet. However, if you had invested in this stock over the past 5 years, you probably would have made a very decent 9% per year total return. As the dividends have increased very fast from a lower yield, over the past 5 years the portion of the total return attributable to dividends would probably be under 2%.

The return on equity for this stock has also been very good. The ROE for the last financial year is 20.8% and for the last 12 months a bit lower at 20.2%. The 5 year median ROE is 20.8%.

I decided to try out this stock and purchased a couple of hundred shares today. I also sold Enerflex Ltd. (TSX-EFX) that I got from a distribution by Toromont Industries. I had not wanted this company and it seemed like a good time to sell. The price I got was a bit below the ACB of the stock, but this is a low market and I got Evertz at a good price. I also bought some Ag Growth International (TSX-AFN) at a good price.

Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is ere Evertz. See my spreadsheet at et.htm.

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. See my website for stocks followed and investment notes. Follow me on twitter.