McCoy Global Inc.

Sound bite for Twitter and StockTwits is: Dividend Paying Small Cap. This company's earnings are a bit volatile, but it is an industrial stock. I have used it to soak up bits of cash left over in the TFSA account after I have purchased something with my January deposits. See my spreadsheet at mcb.htm.

I own this stock of McCoy Global Inc. (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 small cap company that started to pay dividends in 2004. Dividends have been inconsistent. They have gone down as well as up and they were cancelled in 2010, but a special dividend was paid in 2011 that was $0.04 per share when the 2009 dividend was $0.03 per share.

Dividend yield started out quite low with the median yield at 0.5%. The dividend median yield for 2014 was 3.65%. The current dividend yield is 4.17%. The historical dividend high is 10.16% and the low is 0.06%. The median dividend yield is 1.93%.

Dividends have been level since 2013, but dividend growth is at 35% and 46% per year over the past 5 and 10 years. The Dividend Payout Ratios for 2014 are 30.8% for EPS and 20.3%. The 5 year median DPRs are EPS are 30.7% and 20.3%.

I have earned a total return of 6.02% per year on this stock. The portion of this total return from dividends is 3.79% per year and from capital gains is 2.23% per year. Total return over the past 5 and 10 years is a gain of 9.56% and loss of .59% per year, respectively. The portion of this total return attributable to capital is a 5.34% per year gain over the past 5 years and a 2.38% per year loss over the past 10 years. The portion of this total return attributable to dividend is 4.21% and 2.09% per year over the past 5 and 10 years.

Shares have grown at 0.9% and 4.6% per year over the past 5 and 10 years. Revenue growth is moderate to good, EPS growth is good and Cash Flow growth is good. Analysts expect both Revenue and EPS to drop in significantly 2015. They expect a modest drop in Cash Flow.

Revenue has grown by 4.3% and 8.8% per year over the past 5 and 10 years. Revenue per Share has grown at 3.4% and 4.0% per year over the past 5 and 10 years. Analysts expect revenue to be down by some 18% in 2015 and then pick up again in 2016. Revenue for the first quarter of 2015 was down a bit.

EPS growth has been at 37.9% and 14.5% per year over the past 4 and 10 years. Net Income is up by 38.8% and 20.6% per year over the past 4 and 10 years. Earnings tend to be a bit volatile. 5 years ago the company had an earnings loss. If you look at EPS using 5 year running averages, the growth is 43.5% and 22.6% per year over the past 5 and 9 years. Analysts expect earnings to drop considerable in 2015, but the first quarter had only a low drop in Earnings.

Cash Flow is up by 67.3% and 20.0% per year over the past 5 and 10 years. CFPS is up by 65.8% and 14.7% per year over the past 5 and 10 years. Analysts expect a small drop in CFPS for 2015. The first quarter showed a very modest drop in Cash Flow.

Return on Equity was below 10% once in the past 5 years and that was in 2010. The ROE for 2015 was 17.6% and the 5 year median is 15.2%. The ROE on comprehensive income was 20% in 2018 and the 5 year median value was 14.3%.

For the last 5 years the debt ratios have been very good. The Liquidity Ratio for 2014 was 3.81 and it 5 year median value is 2.74. The Debt Ratio for 2014 was 4.46 and the 5 year median is 3.01. The Leverage and Debt/Equity Ratios for 2014 are 1.29 and 0.29. Their 5 year median values are 1.50 and 0.50, respectively.

This is the first of two parts. The second part will be posted on Wednesday, June 10, 2015 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 Global.

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.

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