Wednesday, August 24, 2016

Evertz Technologies

Sound bite for Twitter and StockTwits is: Price cheap to reasonable. The ratios are a bit high but relatively speaking, the current price is good. For example, the current P/B Ratio of 3.60 is on the high side for this sort of ratio. The 10 year median P/BN Ratio of 3.54 is also on the high side for this sort of ratio. See my spreadsheet on Evertz Technologies .

I own this stock of Evertz Technologies (TSX-ET, OTC-EVTZF). I got the 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 article that was looking for reliable dividend payers. That is companies that have reliable profits big enough to comfortably cover their dividend payments. They have an end of March financial year.

The dividends on this stock are good and the growth is moderate. The current dividend is 4.06% based on a stock price of $17.75 and dividends of $0.72. The dividends were started in 2008 and the 5 and 8 year growth rates are 14.9% and 17.4% per year. Growth in dividends has come at the expense of high Dividend Payout Ratios.

The DPR for EPS for 2016 is at 76.6%. The 5 year running average is at 123%. This is because they paid out a special dividend in 2014 that earnings could not cover. The DPR for EPS is expected to be around 67% in 2017. The DPR for CFPS is at 53% in 2016 and is expected to be around 60% in 2017.

I have had this stock for some 4.8 years and dividends have covered some 26% of my original stock price. I am also making a dividend yield of 5.7% on my original stock price. This is not that far off the current dividend yield, but dividend yields have risen since I bought my stock in 2011. When I bought my stock in 2011 I was getting a dividend yield of 2.8%.

The company hit a peak for the March 30, 2011 financial year. That financial year is 5 years ago, so the 5 year growth does not look very good. The company has surpassed this peak in Revenue, but not in earnings or cash flow. But earnings and cash flow has been increasing over the past 2 to 3 years.

A positive note is the debt ratios which are very good. The Liquidity Ratio for 2016 was at 5.36 and the Debt Ratio was at 5.71. Leverage and Debt/Equity Ratios for 2016 are 1.21 and 0.21 respectively.

I get 5 year low, median and high median Price/Earnings per Share Ratios of 14.54, 17.70and 21.07. The corresponding 10 year values are 14.04, 17.45 and 20.36. The current P/E Ratio is 16.59 based on a stock price of $17.75 and 2017 EPS estimate of $1.07. This testing suggests that the stock price relatively reasonable, and below the median.

I get a Graham Price of $10.90. The 10 year Price/Graham Price Ratios are 1.37, 1.67 and 1.94. The current P/GP Ratio is 1.63 based on a stock price of $17.75.. This testing suggests that the stock price relatively reasonable, and below the median.

I get a Price/Book Value per Share Ratio of 3.54. The current P/B Ratio is 3.60 a value some 1.51% higher. The current P/B Ratio is based on BVPS of $4.94 and a stock price of $17.75. This testing suggests that the stock price relatively reasonable, and at the median.

The current dividend yield is 4.06%. The historical median (or 8 year median) dividend yield is 3.21% a value some 26% lower. This testing suggests that the stock price relatively cheap.

When I look at analysts' recommendations, I see Strong Buy and Buy recommendations. Most are Buy recommendations and the consensus would be a buy recommendation. The 12 month stock price consensus would be $20.63. This would imply a total return of 20.28% with 16.23% from capital gains and 4.06% from dividends.

Richard Conner on Consumer Eagle talks about how the three analysts following this stock all rate it a Buy. On Market Wired this company talks about the highlights of their Fiscal Year of 2016. Joseph Solitro in March 2016 on Motley Fool named this stock in a list of undervalues tech stocks.

I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.

The last stock I wrote about was about was ONEX Corp. (TSX-OCX, OTC-ONEXF)... learn more . The next stock I will write about will be Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF)... learn more on Friday, August 26, 2016 around 5 pm. Tomorrow on my other blog I will write about Are We Still Capitalist? ... learn more on Thursday, August 25, 2016 around 5 pm.

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 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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

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