Monday, January 6, 2014

Calian Technologies Ltd.

On my other blog I am today writing about Dividend Stocks that may be cheap. I am showing this information for the remaining stocks that I follow...continue...

I own this stock of Calian Technologies Ltd. (TSX-CTY, OTC-CLNFF). This is an interesting small cap company with a very nice dividend. This stock came up on a Globe Investor site. The Globe Investor Number Cruncher is an investment column about screening for stocks and funds. They did one on companies with little to no debt. I also noted that the Financial Blogger has this stock on his Top Ten Canadian Dividend Stocks list.

The company initiated dividends in 2003 and since that time they have increased the dividend every year except for the financial year ending in 2013. It would appear from their site that they have no current intentions of raising the dividend for the 2014 financial year. The company is being cautious and it is not surprising. It has been a slow economic recovery and the Federal Government is trying to trim its workforce.

The dividend is currently quite good on this stock and it currently at 5.3%. This yield is higher than the 5 year median dividend yield of 4.9% and the 10 year dividend yield of 4.36%. The 5 and 10 year growth in dividends is at 15.7% and 20.8% per year.

The total return on this stock is 22.01% and 10.26% per year over the past 5 and 10 years. The capital gain portion of this return is at 12.74% and 5.27% per year over these periods. The dividend portion of this return is at 9.27% and 5% per year over these periods.

The outstanding shares are down by 1.8% and 1% per year over the past 5 and 10 years. Shares have increased due to stock options and the Employees Share Purchase Plan and they have decreased due to buy backs. The company has been busy doing buy backs lately because they think that stock price is at a very good level.

Mostly this company has had good growth in Revenue, Earnings and Cash Flow over the past 5 and 10 years. The problem is that there has not been good growth recently, especially for the last financial year. Because of the share buy backs, the Revenue per Share, EPS and CFPS look better than what the company is really doing.

The Revenue per Share has increased by 5.7% and 6.2% per year over the past 5 and 10 years. The Revenue per Share increased by 1.9% for the 2013 financial year, but there was a decrease in Revenue of 1.5% in the 2013 financial year.

For Earnings per Share, the 5 and 10 year increases are at 6.4% and 11.6% per year. If you look at the 5 year running averages, the increases are even better at 11% and 24.4% per year over the past 5 and 10 years. Here again, 2013 was not a good year with the EPS declining at 6% and the net income declining even further at 7.5%.

Cash Flow per Share is up by 6.2% and 5.6% per year over the past 5 and 10 years. Here again if you use the 5 year running averages, the increases are even better at 9.7% and 13.2% per year over the past 5 and 10 years. However, the CFPS decreased by almost 25% in 2013.

The Return on Equity has generally been very good lately (past 7 years) and has been over 10%. The ROE for the 2013 financial year is at 19.5% and the 5 year median is 20.9%. The ROE on comprehensive income is close to that on net income and is at 18.1% for the 2013 financial year.

A very good thing about this company is the great debt ratios. The Liquidity Ratio is quite high at 2.66 and the Debt Ratio is also very high at 3.16. The Leverage and Debt/Equity Ratios are also very good at 1.46 and 0.46. Good debt ratios really help a company get through some bad economic situations.

My total return to date is not as good as it was last year as the price at the end of 2013 was slightly lower than the price at the end of 2012. For 2013, the stock price has been quite volatile. My total return to date is 11.22% per year with 5.01% from dividends and 6.21% from capital gains.

The dividends on this stock have been quite good. The stock price has been volatile and has not gone anywhere lately. See my spreadsheet at cty.htm.

This is the first of two parts. The second part will be posted on Tuesday, January 05, 2014 and will be available here.

Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. Its web site is here Calian.

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.

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