I do not own this stock of Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). This is a stock given as a recommendation by Keystone at the Toronto Money Show of 2012. I decided to check into it as it is a small tech company that is paying dividends. Also, I decided to review this stock because Keystone has recommended some very good stocks in the past.
The company started to pay dividends in 2003about 13 years ago. I consider them a dividend growth company and they have increased their dividends every year over the past 9 years. The dividends are low to moderate and the dividend growth is high. The current dividend is 1.71% with a 5 year median of 2.97%. The dividends have grown at 22.7% and 14.6% per year over the past 5 and 10 years.
The last dividend increase was in 2015 and the increase was quite good at 20%. The current dividend is rather low, but not as low as it has gone in the past. The historical low dividend yield is 0.7% and the high is 4.3%. The stock price has been rather volatile.
The Dividend Payout Ratios are good. The 5 year median DPR for EPS is 29% and for CFPS is $18.2%. The DPRs for 2014 was at 26.7% for EPS and at 19.6% for CFPS.
I color code the growth in Revenue, Earnings and Cash Flow on my spreadsheet. When I look at this spreadsheet there is a mixture of all three colors. Also, you can see that 5 year growth is much better than 10 years growth.
Revenue growth is at 20.7% and 5.5% per year over the past 5 and 10 years. EPS has grown by 30.7% and 12.7% per year over the past 4 and 10 years. I only have 4 years of growth for EPS as 2009 EPS was negative. CFPS is up by 58.7% and 3.1% per year over the past 5 and 10 years.
Over the past 5 years, the Return on Equity was negative only once. The ROE was 15.1% in 2014 and it has a 5 year ROE of 14.4%. The ROE on comprehensive income for 2014 was 17.5% and its 5 year median ROE is 14%. The median difference between these ROE is just 0.8% over the past 5 years. This suggests that the net income is of good quality.
The Liquidity Ratio has been good over the past 5 years and the one for 2014 was 2.00. The Debt Ratio has been good also with the 2014 ratio at 3.31. The Leverage and Debt/Equity Ratios have always been good with the ones for 2014 at 1.43 and 0.43.
Sound bite for Twitter and StockTwits is: Small cap dividend growth Tech company. See my spreadsheet at xtc.htm.
This is the first of two parts. The second part will be posted on Monday, February 9, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Exco is a global designer, developer and manufacturer of dies, moulds, equipment, components and assemblies to the die-cast, extrusion and automotive industries. The Die Casting and Extrusion Technology groups operations are based in Canada, U.S., Mexico and Colombia and primarily serve automotive and industrial markets throughout the world. The Automotive Solutions Group has facilities are located in Canada, U.S., Mexico and Morocco and supply the North American, European and Asian markets. Its web site is here Exco Technologies.
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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