Evertz Technologies

Sound bite for Twitter and StockTwits is: Dividend growth tech. I still find this stock interesting. I purchased additional shares in January and February of this year. Price testing is all over the place, but it seems by most tests to be relatively reasonable. 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. The company also has a large amount of insider ownership.

What I found interesting in updating my spreadsheet was that although I was making a fairly good return, most of the return is in dividends. I have had this stock for 5.7 years. My total return is 12.96% per year with 5.76% from capital gains and 7.20% from dividends. Part of the reason for this is two special dividends given.

The other thing to mention is the company's great debt ratios. The Liquidity Ratio for 2017 is 4.16 with a 5 year median of 5.62. The Debt Ratio is 4.62 with a 5 year ratio of 6.15. The Leverage and Debt/Equity Ratios for 2017 are 1.28 and 0.28 respectively. These are all very good. Note that this company has a fiscal year end of April 30 of each year so I have reviewing the fiscal year ending in April 30, 2017.

They can cover their dividends. They gave out a special dividend from the cash they had and this cannot be covered by EPS, but ignoring the special dividend the Dividend Payout Ratio for 2017 would be 78%. The 5 year median DPR is also 78%. Both special dividends were paid from excess cash on hand.

Dividends on this company started off low from 0.9% to 1.5%. However, the dividends have grown faster than the stock so the current dividends are quite good at 4.02%. The ending April 2017 was the first year that dividends were not increased. But a special dividend was declared. Current cash is some 4.3% of the stock's price at $0.72 per share.

The 5 year low, median and high median Price/Earnings per Share Ratio are 15.18, 17.77 and 19.45. The corresponding 10 year values are 12.23, 17.72 and 19.96. This 12 year values are similar at 14.35, 17.72 and 19.84. The current P/E Ratio is 16.57 based 2018 EPS estimate of $1.08 and a stock price of $17.90. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $10.10. The 10 year low, median and high median Price/Graham Price Ratios are 1.37, 1.67 and 1.93. The current P/GP Ratio is 1.77 based on a stock price of $17.90. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year Price/Book Value per Share Ratio is 3.54. The current P/B Ratio is 4.27 a value some 20.4% higher than the 10 year ratio. The current P/B Ratio is based on Book Value of $317.83, BVPS of $4.20 and a stock price of $17.90. This stock price testing suggests that the stock price is relatively expensive. It becomes expensive when the current ratio is 20% or more high than the 10 year median ratio.

The historical median dividend yield is 3.60%. The current dividend yield is 4.02% based on dividends of $0.72 and a stock price of $17.90. The current dividend yield is some 11.7% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 3.55. The current P/S Ratio is 3.18 based on 2018 Revenue estimate of $426M, Revenue per Share of $5.62 and a stock price of$17.90. This stock price testing suggests that the stock price is relatively reasonable but above the median.

There are only 4 analysts following this stock. One gives a Strong Buy and 3 a Buy. The consensus recommendations would be a Buy. The 12 month stock price is $19.63. This implies a total return of 13.69% with 9.66% from capital gains and 4.02% from dividends.

This press release on Stock House talks about a large purchase by a US customer. Financial Newsweek Staff on Financial Newsweek says that the balance step shows a bullish trend. Raj Burman on Simply Wall Street says that Evertz shares are slightly overvalued. See what analysts are saying at Stock Chase.

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.

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 Wednesday, August 21, 2017 around 5 pm. Tomorrow on my other blog I will write about Credit Card Debt is Deadly... learn more on Tuesday, August 22, 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.

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