I do not 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.
When I was updating my spreadsheet, I noticed that there is a lot of general insider selling but not by important insiders like CEO and CFO. Selling is basically insiders not taking up options. They give a lot of options, relatively speaking. The financial year ends in September each year, so the last financial year ended September 30, 2018.
The dividend yields have varied widely from low to good. Currently the yield is moderate at 3.61%. The 5, 10 and historical median dividend yields are good at 4.69%, 5.31% and 4.36%. The dividends have been flat since 2013 and analysts do not see that changing over the next couple of years.
I think there is no problems with dividend coverage. The Dividend Payout Ratio for 2018 financial year is 54% with 5 year coverage at 65%. The DPR for CFPS for 2018 is 34% with 5 year coverage at 40%. The DPR for CFPS has been a little too high in the past but is currently fine.
The debt ratios I follow are shown below. As you can see all the ratios are great. The company has no long term debt. This is a small company and it is in the Tech sector, so their very good debt ratios will see them through any tough times.
| Ratio | Curr. | 5 Yr. Med |
|---|---|---|
| Long Term Debt/Market Cap Ratio | 0.00 | 0.00 |
| Liquidity Ratio | 2.32 | 2.51 |
| Debt Ratio | 2.92 | 3.01 |
| Leverage (Assets/Book Value) Ratio | 1.52 | 1.50 |
| Debt/Equity Ratio | 0.52 | 1.52 |
The Total Return per year is show below for years of 5 to 25 to the end of 2018. 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.
It has not done that well lately and the dividend growth has declined. The 2008 recovery has been hard on a lot of companies. This company has had a flat dividend since 2013.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | 0.00% | 12.60% | 7.77% | 4.83% |
| 2008 | 10 | 7.57% | 17.96% | 10.23% | 7.73% |
| 2003 | 15 | 13.39% | 10.85% | 6.10% | 4.76% |
| 1998 | 20 | 16.75% | 11.46% | 5.30% | |
| 1993 | 25 | 8.63% | 4.59% | 4.03% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.54, 13.90 and 16.75. The 10 year corresponding ratios are 2.17. 11.37 and 15.63. The historical ratios are 9.64, 11.38 and 13.41. The current P/E Ratio is 13.20 based on a stock price of $31.01 and 2019 EPS estimate of $2.35. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $26.06. The 10 year low, median, and high median Price/Graham Price Ratios are 0.97, 1.06 and 1.16. The current P/GP Ratio is 1.19. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 2.20. The current P/B Ratio is 2.41 based on a Book Value of $99.7M, Book Value per Share of $12.84 and a stock price of $31.01. The current ratio is 10% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get an historical median dividend yield of 4.36%. The current dividend yield is 3.61% based on dividends of $1.12 and a stock price of $31.01. The current dividend yield is 17% below the historical yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10 year median Price/Sales (Revenue) Ratio is0.64. The current P/S Ratio is 0.70 based on 2019 Revenue estimate of $343M, Revenue per Share of $44.17 and a stock price of $31.01. The current ratio is some 10% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
Results of stock price testing is showing that the stock price is This stock price testing suggests that the stock price is relatively reasonable but above the median. So, it is a bit pricey, but not overly so.
When I look at analysts’ recommendations, I find only Buy (4) recommendations. The 12 month stock price consensus is $35.50. This implies a total return of 27.77% with 3.61% from dividends and 24.15% from capital gains.
Kevin Ford, CEO of Calian Group Ltd on Ottawa Business Journal talks about the company’s ability to respond to its customers’ needs. Wade Goff on Simply Wall Street says this company has a beta of 1.02 which is surprising for such a small company. Margaret Staats on Enbulletin says that first quarterly EPS is expected to be $0.55. Kris Knutson on Motley Foolthinks this company will provide excellent returns over time. See what analysts are saying about this company on Stock Chase. There are few analysts following this company, but they seem to like this company.
Calian Group Ltd is a Canada-based company. It operates in various business segments that are Systems Engineering, which involves planning, designing, and implementing solutions that meet a customer's specific business and technical needs, in the satellite communications sector; and Business and Technology Services, which involves short and long-term placements of personnel to augment customers' workforces as well as the long-term management of projects, facilities and customer business processes. 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 Monday, January 14, 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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Hi Susan, Based on your Jan. 2018 write up on Calian, I thought you owned this stock. Did you sell it? Just curious. Thanks for all of your informative information.
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