Tuesday, August 26, 2014

Evertz Technologies

I own this stock of Evertz Technologies (TSX-ET, OTC-EVTZF). I got idea to investigate this stock from a G&M Article. It looked like something I might want to try out. This stock came up in a stock screen filter that was looking for reliable dividend payers. That is companies that have reliable profits big enough to comfortably cover their dividend payments. It has high dividends and is probably riskier than average. The company also has a large amount of insider ownership.

First of all, this company declared a special dividend in 2014 which was twice more the normal dividend. You can review the press release here. Basically they had excess cash so they paid a special dividend.

The company was founded in 1996 and went public in 2006 and started to pay dividends in 2008. The dividend is good and the dividend growth is strong. The current dividend is 3.70%, the 5 year median dividend is 3.21% and the dividend has grown at the rate of 17.2% and 21.4% over the past 5 and 6 years.

The most recent increase was for 14.3% in 2013 and so far there has been no increase in 2014. However the financial year end is at the end of April each year. Since dividend started in 2008 they have increased every year. However, analysts do not seem to suggest that dividend will increase this year or next.

Since buying this stock in 2011, I have made a return of 19.60% per year with 11.82% per year from capital gains and 7.78% per year from dividends. The 5 and 8 year total return on this stock is at 10.31% and 6.79% per year. The portion of this return attributable to dividends is at 5.22% and 3.73% per year. The portion of this return attributable to capital gain is at 5.09% and 3.05% per year.

The outstanding shares have not increased over the past 5 year and have increased by 1.53% over the past 9 years. Shares have increased due to Stock Options and have decreased due to Buy Backs. There is growth in revenues, earnings and cash flow but growth has been uneven.

However, Revenue per share has grown at 7.25% and 17.43% per year when looking at 5 year running averages over the past 5 and 8 years. EPS is up by 2.1% and 17.2% per year when using 5 year running averages over the past 5 and 7 years. Cash Flow per Share has grown by 4.9% per year over the past 5 years using 5 year running averages. CFPS share has grown by 40% per year over the past 9 years.

Debt ratios are quite good. The Liquidity Ratio is 5.80, the Debt Ratio is 6.19 and the Leverage and Debt/Equity Ratios are at 1.19 and 0.19.

The Return on Equity has been higher than 10% for all financial years. The ROE for the financial year ending in April 2014 is 19.1% and the 5 year median ROE is at 19.7%. The ROE on comprehensive income is at 20.3% for the financial year ending in April 2014 and the 5 year median ROE is at 19.7%.

Sound bit for Twitter and StockTwits is: Dividend growth tech stock. I am pleased with my investment in this stock. However, it is a tech stock, so I will be keeping my eye on it. See my spreadsheet at et.htm.

This is the first of two parts. The second part will be posted on Wednesday, August 27, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.

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.

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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