Exco Technologies Ltd

Sound bite for Twitter and StockTwits is: Dividend growth small cap. This is a rather small company but it has done well for its shareholder. The stock price is cheap to reasonable. See my spreadsheet on Exco Technologies Ltd.

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.

Dividend yields are moderate and the dividend growth is good. The current dividend yield is 2.97% based on dividends of $0.32 and a stock price of $10.77. Dividends have grown at 20.8% and 18.4% per year over the past 5 and 10 years. The last dividend increase was in 2017 and it was for 14%. They have raised the dividend almost every year since 2007. This is not a long record but the company only started to pay dividends in 2003.

The Dividend Payout Ratios are good. The DPR for EPS for the financial year ending September 2016 is 24% and for the last 5 years is 25%. The DPR for CFPS is also good with the one for the financial year ending in September 2016 at 17% and the 5 year ratio at 18%.

Another good thing about this stock is the debt ratios. The Liquidity Ratio for 2016 is 2.03 and the 5 year median ratio is 2.27. The Debt Ratio is for 2016 is 2.61 and it has a 5 year median of 4.84. Leverage and Debt/Equity Ratios are 1.65 and 0.65 respectively. Their 5 year median ratios are 1.26 and 0.26 respectively.

This stock has provided it shareholders with good growth over the past 5 and 10 years at 37.56% and 18.53% per year to the end of December 2016. The portion of this total return attributable to dividends is at 2.39% and 1.28% per year of these time periods. The portion of this total return attributable to capital gain is at 35.17% and 14.55% per year of these time periods.

The 5 year low, median and high median Price/Earnings per Share Ratios are 9.40, 13.17 and 15.68. The corresponding 10 year ratios are 8.95, 11.78 and 13.99. The historical ratios are 10.21, 13.66 and 17.12. The current P/E Ratio is 8.76 based on a stock price of $10.77 and 2017 EPS estimate of $1.23. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $13.48. The 10 year low, median and high median Price/Graham Price Ratios are 0.73, 0.96 and 1.21. The current P/GP Ratio is 0.80 based on a stock price of $10.77. This stock price testing suggest that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.22. The current P/B Ratio is 1.64 based on BVPS of $6.56 and a stock price of $10.77. The current ratio is some 34% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive. However, a P/B Ratio of 1.50 is considered cheap and one of 1.64 is not an expensive ratio.

The historical dividend yield is 1.90%. The current dividend yield is 2.97% a values some 58% higher. The current dividend yield is based on Dividends of $0.32 and a stock price of $10.77. This stock price testing suggests that the stock price is relatively cheap. Even the 5 year median dividend yield is just 1.95%.

When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 months stock price is 14.08. This implies a total return of 33.70% with 2.97% from dividends and 30.73% from capital gains.

The company has put out a news release for latest quarterly result. As far as I can see they have not published the first quarterly statements yet. Wayne Landers on Sports Perspectives talks about Scotiabank giving it an outperform (or Buy) rating on this stock. See what analysts are saying about this stock at Stock Chase. They mostly like this stock. There is an interesting by Jodi Pearce on Simply Wall Street.

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 Ltd.

The last stock I wrote about was about was AGF Management Ltd. (TSX-AGF.B, OTC-AGFMF)... learn more . The next stock I will write about will be Canadian National Railway (TSX-CNR, NYSE-CNI)... learn more on Friday, February 10, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy February 2017... learn more on Thursday, February 9, 2017 around 5 pm.

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.