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.
When I was updating my spreadsheet, I noticed Revenue has gone up a bit over the last two years, but EPS and CFPS is down. It has not done well lately. Stock price has flattened. Analysts do expect improvements this year and next to Revenue and earnings.
Dividend yield is good and it has always been good. Thee current yield is 4.62% with 5, 10 and historical yields at 4.15%, 3.99% and 3.97%. Dividend growth is slowing, with 10 year growth at 13.7% per year and 5 year growth at 4.4% per year. Dividends stopped growing in 2016.
They probably stopped growing their dividends as the Dividend Payout Ratios got too high. The DPR for 2018 was 103% with 5 year coverage at 140%. Analysts expect the DPR for EPS to be below 100% in 2019. (Note that their financial year ends in April 30 each year.) The DPR for CFPS is also high for 2018 at 81% with 5 year coverage at 95%. This should be 40% or less for safety’s sake.
The Debt Ratios are very good. There is barely any long term debt compared to market cap. The Liquidity Ratio for 2018 is 4.69 with 5 year median at 5.36. The Debt Ratio for 2018 is 4.69 with 5 year median at 5.71. Leverage and Debt/Equity Ratios are also very good at 1.27 and 0.27 respectively.
The Total Return per year is show below for years of 5 to 11. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.
There is a capital loss over the pass 10 years. The 5 year to then end of 2017 has a positive gain, but the current price is where it was in 2013. Year to date the stock price is down by 14.3%.
| Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|
| 5 | 4.42% | 10.14% | 2.79% | 7.35% |
| 10 | 13.67% | -1.32% | -4.72% | 3.40% |
| 11 | 7.05% | 2.68% | 4.37% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.10, 18.12 and 21.07. The corresponding 10 year ratios are 14.76, 17.72 and 19.96. The historical ones are 14.54, 17.73 and 20.24. The current P/E Ratio is 16.77 based on a stock price of $15.60 and 2019 EPS estimate of $1.16. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $10.60. 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 1.47 based on a stock price of $16.50. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median Price/Book Value per Share Ratio of 3.54. The current P/B Ratio is 3.62 based on Book Value of $329M, Book Value per Share of $4.30 and a stock price of $15.60. the current ratio is some 2.3% above thee 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median. It is close to the median.
I get an historical median dividend yield of 3.97%. The current dividend yield is 4.62% a value some 16% below the historical one. The current dividend is based on Dividends of $0.72 and a stock price of $15.60. 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 3.48. The current P/S Ratio is 3.00 based on 2019 Revenue estimate of $428, Revenue per Share of $6.03 and a stock price of $15.60. The current ratio is 19.9% below the 10 year median. This stock price testing suggests that the stock price is relatively reasonable and below the median. It is close to being cheap.
When I look at analysts’ recommendations I find Strong Buy (1) and Buy (3). The consensus recommendation would be a Buy. The 12 month stock price is $18.56. This implies a total return of 23.59% based on a stock price of $15.60. This would be 18.97% from capital gains and 4.62% from dividends.
Raj Burman on Simply Wall Street says that this company has a very attractive ROCE. Marlon Spencer on Reeves Business Review says the Ultimate Oscillator reading of above 60 says the stock might be headed into overbought Territory. Karen Thomas on Motley Fool says that this stock is undervalued. See what analysts are saying about this stock on Stock Chase. Analyst mainly like this company and think it is well managed.
Evertz Technologies Ltd designs, manufactures and distributes video and audio infrastructure equipment for the production, post-production, broadcast, and telecommunications markets. 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 Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more on Wednesday, August 22, 2018 around 5 pm. Tomorrow on my other blog I will write about Profile Article.... learn more on Tuesday, August 21, 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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