Wednesday, June 12, 2013

Computer Modelling Group Ltd

On my other blog I am today writing about Banks, Energy and Utilities...continue...

I own this stock of Computer Modelling Group Ltd. (TSX-CMG, OTC- CMDXF). I bought this tech stock in 2008 and 2009. It had almost doubled in price by 2011, so I sold half of what I owned to lock in some profit. This stock has a financial reporting date of March 31 each year.

I have had a 40.61% total return per year on this stock. I got 6.15% per year from dividends and 34.46% per year from capital gains. The reason my dividend return is higher than the dividend yield on this stock is because of the rapidly increasing dividends.

The 5 and 10 year total return on this stock is 47.69% and 54.97% per year. The dividend portion of this return is 6.8% and 7.7% per year, respectively. Capital gains are 40.88% and 45.38% per year, respectively.

Dividend growth over the past 5 and 8 years run at 31.54% and 41.42% per year. The most recent dividend increases was in 2012 and it was for 23%. The 5 year median Dividend Payout Ratios are at 101% for earnings and 78% for cash flow. They are basically paying out in dividends all that they are earning. They pay out both special dividends and regular dividends.

Outstanding shares have increased by 2.5% and 2.6% per year over the past 5 and 10 years. Shares have increased due to Stock Options and have decreased due to Buy Backs. Growth has been very good over the past 5 and 10 years with Revenue up by 20% per year over these periods and Revenue per Share up by 17% per year over these periods.

Earnings per Share growth is at 24% and 23% per year over the past 5 and 10 years. Cash Flow per share is up by 23% and 24% per year over the past 5 and 10 years.

The Return on Equity is at 48.3% for the financial year ending in March 31, 2013. The comprehensive income is the same as the net income and therefore its ROE is also 48.3%.

The current Liquidity Ratio is great at 2.64 and the current Debt Ratio is great at 2.61. The current Leverage and Debt/Equity Ratios are quite low and therefore quite good at 1.62 and 0.62.

What is not to like about this stock? However, please note that fast growth tech stocks and this is basically what this one is, are risky. This is why I locked in some profit when the stock has doubled. See my spreadsheet at cmg.htm.

This is the first of two parts. Second part will be posted on Thursday, June 13, 2013 and will be here.

Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil companies and technology centers in approximately 50 countries. Its web site is here Computer Modelling.

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 or StockTwits.

1 comment:

  1. Thanks for sharing the idea there would be some apprehensions from segment but i am up for it.