Monday, June 25, 2012

Evertz Technologies

I am putting up today a new, updated index spreadsheet, see comments blog.

I own this stock (TSX-ET). I bought this stock in November 2011. I have a total return of 17.74% per year, with 3.81 of this return from dividends and 13.93% from capital gain. The dividends comprise of 21.5% of my total return. These values are to the end of May 2012. The actual capital gain is 8.1%. IRR (or internal rate of return) can be a bit misleading for short periods of time. With the recent drop in price, capital gain is just 1.1%. I expect this stock to do well in the long term, but no one knows what the short term will be.

The current dividend is very good at 4.35%. This is higher than the 5 year median of 2.17%. Dividends have been increasing at the rate of 23% over the past 5 years that the company has been issuing dividends. The last dividend increases was for 16.7%. However, the total increase over the past year was 21.7%. This is because dividends were raised twice in the last financial year.

The Dividend Payout Ratio for the last 5 years is good with a median DPR of 35% for earnings and 30% for Cash Flow (using CF excluding non-cash items). However DPRs have been increasing and the values for the financial year ending in April 2012 were 57% and 40% for earnings and cash flow. The DPR for earnings is expected to be around 55% for 2013.

This stock went public in 2006. It has done well over the past 6 or 7 years that I have statistics for and not so well over the past 5 years. However, a lot of companies have not done well over the past 5 years. This is mainly because the last recession started to bit since 2010. Just as it looks like we might be coming out of the recession, it now looks like we might just be going back into another one.

Growth was great until 2009 and then it has dropped off. The 10 year revenue per share grow is at 26% per year, but the 5 year revenue per share growth is just 7.6%. The same is true for EPS which is at 56% per year over the past 10 years, but 0% over the past 5 years. Cash Flow per share is also up great over the past 10 years at 56% per year, but only at 5.7% per year over the past 5 years.

The only good growth over the past 5 years is in book value that this is up 21% per year over this period. However, the 10 year grow in book value is a lot higher at 74% per year.

This company’s insiders hold a lot of the outstanding shares. As is usual for such companies, the debt ratios are extremely good. The current Liquidity Ratio is 8.63. Not as high as last year, but right on the 5 year median. The current Debt Ratio is also very high at 8.32. Both the current Leverage and Debt/Equity Ratios are also good at 1.47 and 0.17, respectively.

The Return on Equity is also very good with one for the last financial year ending April 2012 at 20.2%. The 5 year median ROE is 20.8%. ROE has been dropping lately. The ROE using comprehensive income confirms the good ROE on net income with an ROE of 19.7%.

One of the problems in investing this stock is that the company does not publish their financial statements on their site. You have to look at news articles and sites like G&M to get financial information. G&M only shows what the financials are. Other sites provide a copy of the financial statements (sites like Hot Stocked).

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 here 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.

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