Calian Group Ltd

Sound bite for Twitter and StockTwits is: Good dividend, no debt. This stock is probably at the high end of the buy range or into the expensive range. It is still a health company and his no debt. See my spreadsheet on Calian Group Ltd.

I own this stock of Calian Group Ltd. (TSX-CGY, OTC-CLNFF). In 2011 this looked like an interesting stock with a very nice dividend so I did a spreadsheet on it and decided to buy. This stock came up on a Globe Investor site. The Globe Investor Number Cruncher is an investment column about screening for stocks and funds. They did one on companies with little to no debt. I also noted that the Financial Blogger has this stock on his Top Ten Canadian Dividend Stocks list.

From the time they started to pay dividends in 2003 until 2013 they had a good record of dividend increases. However, since 2013 their dividend has been flat. Their Dividend Payout Ratio for EPS was rather high in 2015 at 84%, but it was lower at 61% in 2016 and it is expected to be lower still in 2017. However, analysts (there seems to be 2 following this stock) do not think that they will raise the dividend in the near future. They probably want to get the Dividend Payout Ratio back to the 30 to 40% range.

I did buy some more of this stock this year, but will not purchase anymore until they again start to raise the dividends again. The dividend yield on this stock is still in the good range at 4.40% based on dividends of $1.12 and a stock price of $24.45. This is below the historical median dividend yield of 4.67% and the 5 year median dividend yield of 5.69%.

This stock is doing better lately as the stock price moved up some 52% in 2016 and is up almost 4% so far this year. The Total Return to the end of 2016 over the past 5 and 10 years is 12.81% and 13.17%. The portion of this return attributable to dividends is 5.68% and 6.29% over the past 5 and 10 years. The portion of this return attributable to capital gain is 7.13% and 6.88% over the past 5 and 10 years.

This company has no debt. The Liquidity Ratio is 2.51 with a 5 year median value of 2.51. The Debt Ratio is 2.99 with a 5 year median of 3.04. Leverage and Debt/Equity Ratios are 1.50 and 0.50 with 5 year median also of 1.50 and 0.50, respectively.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.43, 11.57 and 12.58. The 10 year values are 10.45, 10.91 and 13.39. The historical values are 9.03, 10.76 and 12.62. The current P/E Ratio is 13.32 based on a stock price of $25.45 and 2017 EPS of $1.91. This stock price testing suggests the stock price is relatively expensive.

I get a Graham Price of $21.21. The 10 year low, median and high median Price/Graham Price Ratios are 0.93, 1.02 and 1.13. The current P/GP Ratio is 1.20 based on a stock price of $24.45. This stock price testing suggests the stock price is relatively expensive.

The 10 year Price/Book Value per Share Ratio is 2.05. The current P/B Ratio is 2.43, a values some 19% higher. The current P/B Ratio is based on a stock price of $24.45 and BVPS of $10.47. The problem is that the stock price is going up quicker than the book value. The book value is going up slow because of the high dividends being paid relative to earnings. This stock price testing suggests the stock price is relatively expensive.

The current dividend yield is 4.40%. The historical median dividend yield is 4.67% a value some 5.8% higher. The current dividend yield is based on a stock price of $24.45 and dividends of $1.12. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations, I find (2) Buy Recommendations on this stock. The consensus recommendations would be a Buy. The 12 month consensus stock price is $27.70. This implies a total return of 13.24% with 8.84% from capital gains and 4.40% from dividends.

Darlene McCollum at Daily Quint talks about analysts at Desjardins reducing they FY2014 earnings estimates to $1.90 from $2.00. There is sponsored information on Caligan's success story with Canadian Military in the Ottawa Business Journal. This stock is mentioned in Stock Chase but it is not well covered or well known. There is some analysis of this company on Capital Cube. Brendan Caldwell has this as a top pick on BNN.

The last stock I wrote about was about was Rogers Sugar Inc. (TSX-RSI, OTC- RSGUF)... learn more . The next stock I will write about will be Sylogist Ltd (TSX-SYZ, OTC-SYZLF)...learn more on January 16, 2017 around 5 pm.

Calian Ltd. is a leading program delivery partner for both government and industry customers. The Company operates through two divisions: Systems Engineering Division (SED), and the Business and Technology Services Division (BTS). Its web site is here Calian Group 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.