Tuesday, June 10, 2014

McCoy Global

I own this stock of McCoy Corp. (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. 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.

This is a dividend growth stock. They have grown their dividends over the past 5 and 9 years at the rate of 10.8% and 39.5% per year. However, they had some problems in 2009 and cut their dividends for 5 quarters. I find this a wise decision on their part, however, when people rely on dividends for income, like I do, they often really do not like dividend cuts.

The company lost money in 2008 and 2009. This is why the dividend was cut. They have also not yet increased the dividends for 2014 and we are half way through the year. The Dividend Payout Ratios for 2013 were at 56% for EPS and 29% for CFPS. They are expected to be at 39% and 27% respectively in 2014. Some analysts do expect the company to raise the dividends in 2014.

My total return on this stock is at 18.84% per year with 15.17% per year from capital gains and $3.67% per year from dividends. Mine you I do not have much invested in this stock. The total return over the past 5 and 10 years is at 39.51% per year and 10.96% per year. The portion of this return attributable to capital gains is at 35.22% and 8.80% per year. The portion of this return attributable to dividends is at 4.29% and 2.15% per year.

The outstanding shares have increase by 0.6% and 4.6% per year over the past 5 and 10 years. The shares have increased due to Stock Options and have decreased due to Buy Backs. Revenue, Earnings and Cash flow growth has been better over the past 10 years than over the past 5 years.

Using 5 year running averages, the Revenue is up by 0% and 12.3% per year over the past 5 and 10 years. The Revenue per Share is down by 3.2% and up by 3.4% per year using 5 year running averages over the past 5 and 10 years.

Using 5 year running averages EPS is down by 1% and up by 13.7% per year over the past 5 and 8 years. There are problems in calculating growth in EPS as this company has had years of EPS losses.

Using 5 year running averages, the CFPS has increased by 1% and 12.1% per year over the past 5 and 8 years. Using 5 year running averages, Cash Flow has increased by 4.7% and 19% per year over the past 5 and 8 years.

The debt ratios on this stock are very good. The current Liquidity Ratio is 2.71. The Debt Ratio is 3.39. The Leverage and Debt/Equity Ratios are 1.42 and 42 respectively.

The Return on Equity for 2013 was at 11.4% in 2013. The ROE on comprehensive income was at 14% in 2013. It is a good think when the ROE on Comprehensive Income is at or above that on net income. It basically says that the EPS is of good quality.

I still think that this company will be a dividend growth company. See my spreadsheet at mcb.htm.

This is the first of two parts. The second part will be posted on Wednesday, June 11, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.

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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.

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