DHX Media Ltd

Sound bite for Twitter and StockTwits is: On some measures cheap. In the past investors seemed to be paying a high price for this stock. However, it has lost its momentum since 2014. This may not pick up again until the stock is actually cheap. I would wait for the next upward momentum to start before buying. See my spreadsheet on DHX Media Ltd.

I do not own this stock of DHX Media Ltd (TSX-DHX.B, OTC-DHXMF). I started to follow this stock after reading about it in CanTech Letter. Investors should accumulate DHX Media "aggressively", says Byron Capital was the title of the piece. I was interested as this stock was paying a dividend. Please note that the US DHXMF symbol is the CDN equivalent of DHX.A not DHX.B.

The dividends on this stock are very low. They occasionally rise to at least 1%. I would not buy a stock paying a dividend of less than 1% as it would take too long to get a decent yield on my original purchase of the stock. The current dividend is 1.08% based on a stock price of $6.67 and dividends of $0.072. The 4 year median dividend is 0.89%. Dividends were just started in 2013. Dividend growth so has been good at 15.7% per year.

This company was listed in 2006 at the TSX. This company was formed in 2006 by the merger of Decode Entertainment and Halifax Film Company. Outstanding shares have increased by 16.8% and 15.2% per year over the past 5 and 10 years. If you want to see what growth this company has it is best to look at per share growth. This can make a difference.

For example, Revenue has grown by 41% and 34.3% per year over the past 5 and 10 years, but Revenue per Share has grown by 20.8% and 16.6% per year over the past 5 and 10 years. Because they had a number of earning loss years, I cannot get a growth for EPS for the past 10 years. However, EPS has grown at 48.96% per year over the past 5 years.

The stock price hit a high in 2014. For the past two years the stock price has declined. It declined by 12.8% in 2015 and by 21.3% so far in 2016. Still the total return to date over the past 5 and 10 years is at 102.76% and 25.02% per year over the past 5 and 10 years. The portion of this total return attributable to dividends is at 2.27% and 0.29% per year over the past 5 and 10 years. The portion of this total return attributable to capital gains is at 100.50% and 24.74% per year over the past 5 and 10 years.

The 5 year low, median and high median Price/Earnings per Share Ratios are 37.71, 52.28 and 62.56. The corresponding 10 year values are 33.04, 35.27 and 53.61. These are very high ratios. The current P/E Ratio is 18.53 based on a stock price of $6.67 and a 2017 EPS estimate of 0.36. (Note that the financial year for this stock ends June 30 each year.) This stock price testing suggests that the stock is relatively cheap. On an absolute basis a P/E Ratio of 18.36 is not cheap, but might be considered to be reasonable.

I get a Graham Price of $4.53. The Price/Graham Price Ratios are 1.28, 2.08 and 2.74. These are quite high ratios. The current P/GP Ratio is 1.47 based on a stock price of $6.67. This testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year Price/Book Value per Share Ratio of 1.19. This is a rather low value. The current P/B Ratio is 2.63 a value some 121% higher. The current P/B Ratio is based on BVPS of $2.53 and a stock price of $6.67. However, this ratio has been higher lately and the 5 year median value is higher at 2.53. This stock price testing suggests that the stock price is relatively expensive.

There is too little data to do a good stock price test using dividend yield. However, the 4 year median dividend yield is just 0.89% and this is some 21% lower than the current dividend yield of 1.08%. The current dividend yield is based on dividends of $0.072 and a stock price of $6.76. Note that the dividend yield high on this stock is 2.06% a value some 48% higher. If you look at the median dividend yield, stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. Most of the recommendations are a Hold, but the consensus recommendation is a Buy. The 12 month stock price is $10.21. This implies a total return of 54.15% with 53.07% from capital gains and 1.08% from dividends.

According to Highland Digest this company has a Value Composite Score of 68. This would suggest that the stock is not cheap. According to Daily Quint TD recently reissued their buy recommendation on this stock with a stock price of $9.00. See what analysts are saying on Stock Chase.

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 that report here.

The last stock I wrote about was about was Northland Power Inc. (TSX-NPI, OTC-NPIFF)... learn more . The next stock I will write about will be First Capital Realty (TSX-FCR, OTC-FCRGF)... learn more on Wednesday, December 14, 2016 around 5 pm. Tomorrow on my other blog I will write about Walking and Winning Tours... ... learn more on Tuesday, December 13, 2016 around 5 pm.

DHX Media is a leader in the creation, production and marketing of family entertainment. DHX Media owns, markets and distributes over 10,000 episodes of entertainment programming worldwide and licenses its owned properties through its dedicated consumer products business. Its web site is here DHX Media Ltd.

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.