Calian Group Ltd

First I would like to say that I bought Alaris Royalty Corp (TSX-AD, OTC-ALARF) for my main purchase in my TFSA for my 2018 deposit.

Sound bite for Twitter and StockTwits is: Dividend Paying Tech. The stock price is generally testing as expensive, but it is just into the expensive range and so not that overpriced. A good sign that they are growing again would be an increase in dividends but analysts do not see this happening over the next couple of years. See my spreadsheet on Calian Group Ltd.

I own this stock of Calian Group Ltd. (TSX-CGY, OTC-CLNFF). This is an interesting company with a very nice dividend. 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.

This company has virtually no debt and certainly no long term debt. I remember one commentator at the Money Show saying that it was almost impossible for a company with no debt to go bankrupt. This company hit a peak in 2012. They have now surpassed this in Revenue, Earnings and stock price, but they have not reinstated dividend growth. Dividends have not been increased since 2012. You know that the company feels more confident about the future when dividends are increased.

The main thing to point out is that they have not raised the dividend since 2012. Business has had a long slow recovery and this has had a big effect on a lot of companies. Prior to 2012 dividend were growing. The dividend growth rate was 1.1%, 10.3% and 14.4% per year over the past 5 and 10 years. Dividends have only been paid since 2003, but there was some very good growth at first.

The current dividend yield is moderate, but it has varied a lot. The high is around 7.6% and the low around 1.6%. The current dividend yield is 3.92% and the historical median yield is 4.9%. This 5 and 10 year median yield is 5.7% and 5.3%.

They have had no trouble covering the dividends. The Dividend Payout Ratio for 2017 is 55.7% with 5 year coverage at 67%. The DPR for 2017 for CF is 36% with 5 year coverage at 42%. The preferred DPR for CF is at 40% or less.

This stock has only been around on the TSX since 1993 so I have only up to 24 years of total return. The total return per year over the past 5 10, 15, 20 and 24 years is at 13.45%, 15.28%, 20.32%, 18.19% and 9.02% per year. Total return includes both capital gain and dividends. This is a compounded rate of return. Any compounded rate of return above 8% is good. Mostly the total return on this stock has been good for investors.

The total return on this stock has included a lot of dividends. The 5 and 10 year total return is 13.45% and 15.28% per year which includes 8.88% and 9.23% per year in capital gains and 4.57% and 6.04% in dividends.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.34, 13.09 and 13.84. The corresponding 10 year ratios are 11.20, 11.08 and 14.98. The historical ratios are 9.54, 11.27 and 12.69. The current P/E Ratio is 15.43 based on a stock price of $32.10 and 2018 EPS estimate of $2.08. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $23.39. The 10 year low, median and high median Price/Graham Price Ratios are 0.93, 1.02 and 1.14. The current P/GP Ratio is 1.22 based on a stock price of $32.10. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Book Value per Share Ratio is 2.01. The current P/B Ratio is 2.45 based on Book Value of $89.49, Book Value per Share of $11.69 and a stock price of $32.10. The current P/B Ratio is some 21.8% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

The historical median dividend yield is 4.90%. The current dividend yield is 3.92% based on dividends of $1.12 and a stock price of $32.10. The current yield is some 20% higher than the historical median. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.62. The current P/S Ratio is 0.73 based on 2018 Revenue estimate of $300M, Revenue per Share of $39.19 and a stock price of $32.10. The current P/S Ratio is some 18% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations I find only Buy (4) Recommendations and the consensus would be a Buy. The 12 months stock price is $37.00. This implies a total return of 19.18% with 15.26% from capital gains and 3.92% from dividends based on a current stock price of $32.10.

Marguerite Chambers on BZ Weekly says analysts expect the company to report $0.49 EPS on February 7, 2018. Times Staff Times Staff says on Ozark Times that some measures so no strong trend for this stock. Andrew Edmonds on Simply Wall Street thinks this stock is fairly valued. See what analysts are saying about this stock on Stock Chase. Most like it, but one analyst points out that if they lose a big contract it really impacts the results.

Calian Group Ltd is engaged in providing business and technology services to industry and government in the health, IT services and training and engineering domains. Its web site is here Calian Group Ltd.

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 Toronto Dominion Bank (TSX-TD, NYSE-TD)... learn more on Friday, January 12, 2018 around 5 pm. Tomorrow on my other blog I will write about Update Notes.... learn more on Thursday, January 11, 2018 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.