McCoy Corp

On my other blog I am today writing about Capitalism haters' lack of understanding...continue...

I own this stock of McCoy Corp (TSX-MCB, OTC- MCCRF). In 2011, I decided to try out McCoy Corp shares. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.

I have made a total return of 7.73% per year on this stock with 4.12% from capital gains and 3.61% from dividends. This company currently has a good dividend yield of 4.2% and they occasionally also give out special dividends. However, when they had problems after the 2008 bear market and recession, they first cut the dividend and then eliminated it.

Currently, the Dividend Payout Ratios for earnings is around 40% and for cash flow around 30%. These are fine ratios. Dividend growth over the past 5 years is at 15% per year. The most recent increase was for 2012 at 67%. The dividends currently being paid are some 67% higher than the last dividends paid in 2008 before the dividend cut.

This stock has 5 and 10 year total returns of 10.11% and 38.37% per year, respectively. The dividend portion of this return is 2.36% and 5.06% per year and the capital gains portion is 7.75% and 33.3% per year, respectively.

Outstanding shares have decreased by 0.8% per year over the past 5 years. Outstanding shares have increased by 4.3% per year over the past 10 years. Shares have increased due to stock options and share issues. They have decreased due to share buy backs. Generally speaking, 10 year growth for this company is better than the 5 year growth. This company was seriously hurt in the last recession.

Revenues are up by 2.2% and 21% per year over the past 5 and 10 years. Revenue per Share is up by 3.1% and 15.8% per year over the past 5 and 10 years. Earnings are up by 4.1% and 27% per year over the past 5 and 10 years. Cash Flow per Share is up by 4.1% and 23% per year over the past 5 and 10 years.

Over the past 10 years they have had 2 years negative earnings, in 2008 and 2009. Prior to 10 years ago, the last year of negative earnings was 2002. They started to pay dividends only in 2004.

The Return on Equity has generally been good and over 10%. However, negative earnings will give you negative ROEs, so the 5 year median ROE is just 8.5%. However, the ROE for 2012 was 15.2%. The ROE on comprehensive income varies from the ROE on net income. The ROE on comprehensive income was lower for 2012 at 14.3%.

The Liquidity Ratio has always been very good and the current Ratio is 2.92. The 5 year median Liquidity Ratio is 2.64. This ratio used to be much lower, around 1.30 prior to 2007. The Debt Ratio is also very good at 3.13. The current Leverage and Debt/Equity Ratio are also very good at 1.47 and 0.47.

This company is rather risky. It is small and it provides services to the energy business. It is also considered to be a tech stock for some analysts as it provides technologies to the energy business. I do not expect that this company will do very well again until the oil and gas industries revive, but I am happy with what it will add to the performance in my TFSA. See my spreadsheet at mcb.htm.

This is the first of two parts. Second part will be posted on Tuesday, June 11, 2013 and will be here.

McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.

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.