Exco Technologies Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Industrial stocks tend to be more volatile that other stocks, but this one is cheap to reasonable so if you can stand the volatility this would be a good dividend growth stock to own. You would buy for diversification reasons. 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.

This stock hit a peak in July of 2015 and the stock price has been travelling south ever since. This was probably because they are in Auto Parts industry and people are worried about this industry now. Insiders were selling last year, but this year they are buying.

Dividend yields are low to moderate with good dividend increases. As the stock price has stalled and declined you get higher dividend yields. The historical median dividend yield is just 1.95% as is the 5 year median dividend yield. However, the 10 year dividend yield is in the moderate range of 2.89%, as is the current dividend yield of 3.47%.

Dividends were only started in 2003. So I have just 5, 10 and 14 Years of data for this company for dividend growth. For the last periods the dividend growth is good, and the first period the dividend growth is moderate. Dividend growth over the past 5, 10 and 14 years is at 18.09%, 17.85% and 13.92%. I consider dividend growth to be moderate between 8% and 15% growth and over 15% to be good growth.

This stock has been on the TSX since 1992. Therefore I have 5, 10, 15, 20 and 25 year data for stock growth. This stock has done well lately and did not badly over the past 25 years, but the total return over the past 15 and 20 years is low. The 5, 10, 15, 20 and 25 year total returns are at 13.51%, 12.32%, 4.10%, 4.5% and 9.36% per year.

The portion of the total return attributable to capital gains is at 10.45%, 9.91%, 2.70%, 3.43% and 8.24% over the past 5, 10, 15, 20 and 25 years. The portion of the total return attributable to dividends is 3.06%, 2.41%, 1.40%, 1.07% and .1.12%. This is an industrial stock so it can have its ups and downs.

The Dividend Payout Ratios are good. The DPR for 2017 is at 31% with 5 year coverage of 27%. The DPR for CFPS is also good with DPR for CFPS at 20% for 2017 and 5 year coverage of 18.6%.

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 P/E Ratios are 8.39, 10.21 and 12.46. The corresponding historical P/E Ratios are 9.80, 13.51 and 16.45. The current P/E Ratio is 8.60 based on a stock price of $9.80 and EPS estimate of $1.14 for 2018. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $13.58. The 10 year low, median and high median Price Graham price ratios are 063, 0.78 and 1.03. The current P/GP Ratio is 0.72 based on a stock price of $9.80. This stock price testing suggests that the price is relatively reasonable and below the median.

The 10 year median Price/Book Value per Share is 1.28. The current P/B Ratio is 1.36 based on a stock price of $9.80, Book Value of $305M and Book Value per Share of $7.19. This stock price testing suggests that the stock price is relatively reasonable, but above the median.

The historical median dividend yield is 1.95%. The current dividend yield is 3.42% a value some 78% higher. The current dividend is based on dividends of $0.34 and a stock price of $9.80. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.80. The current P/S Ratio is 0.73 based on 2018 Revenue estimate of $568M, Revenue per Share of $13.38 and a stock price of $9.80. The current P/S Ratio is some 8.6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

When I look at analysts' recommendations I find Buy (2) and Hold (4). The 12 month stock price consensus is $11.67. The consensus would be a Hold. This implies a total return of 22.55% with 19.08% capital time gains and 3.47% from dividends with 19.08% from capital gains.

Kay Ng of Motley Fool likes this company because it is committed to rising dividends. Lenox Staff analysis show this company is a favourable light at Lenox Ledger. For example it has a low score for the Gross Margin Score which shows it has stability and growth. See what analysts are saying about this stock on Stock Chase. Mostly, the analysts like this stock.

Exco Technologies Ltd is a designer, developer and manufacturer of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries. 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 Wednesday, February 7, 2018 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks February 2018... learn more on Tuesday, February 6, 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.

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