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. This stock has a financial year ending April 30 each year.
When I was updating my spreadsheet, I noticed that they debt ratios are very good. This allows them to survived the hard times. Their Liquidity Ratio is 3.55 with 5 year median of 4.16. Their Debt Ratio is 4.20 with 5 year median of 4.69. However, they have not raised their dividend since 2016, but did give a good special dividend in 2017.
The dividend yield is in the moderate range (2 to 4% ranges). The current dividend is 3.89%, with 5, 10 and historical median yields at 4.40%, 4.02% and 3.99%. The company did dividend increases until 2017 when the dividend went flat.
The Dividend Payout Ratios are currently too high and that is probably why dividends have been flat. I expect that they will improve and increase will be made in the future. The DPR for 2019 for EPS was 71% with 5 year coverage at 105%. The DPR is expected to be a bit lower in 2020 at 69%. The DPR for CFPS for 2019 was 51% with 5 year coverage at 71%.
Debt Ratios are very good. The Long Term Debt/Market Cap Ratio is 0.00 for 2019. The Liquidity Ratio is 3.55 for 2019 with 5 year median at 4.16. The Debt Ratio for 2019 was 4.20 with 5 year median at 4.69. The Leverage and Debt/Equity Ratios for 2019 was 1.31 and 0.31 respectively with 5 year median at 1.27 and 0.27 respectively.
The Total Return per year is shown below for years of 5 to 12 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 chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | 2.38% | 6.96% | 1.03% | 5.93% |
| 2008 | 10 | 9.52% | 7.08% | 1.65% | 5.43% |
| 2005 | 12 | 12.35% | 6.12% | 1.46% | 4.66% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.10, 17.77, and 19.45. The corresponding 10 year ratios are 14.76, 17.72 and 19.96. The corresponding historical ratios are 14.51, 17.72 and 19.84. The current P/E Ratio is 17.80 based on a stock price of $18.51 and a 2020 EPS estimate of $1.04. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $10.39. The 10 year low, median, and high median Price/Graham Price Ratios are 1.41, 1.67 and 1.93. The current P/GP Ratio is 1.78 based on a stock price of $18.51. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median Price/Book Value per Share Ratio of 3.54. The current P/B Ratio is 4.01 based on a Book Value of $353M, Book Value per Share of $4.61 and a stock price of $18.51. The current ratio is 13% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get an historical median dividend yield of 3.99%. The current dividend yield is 3.89% based on dividends of $0.72 and a stock price of $18.51. The current dividend is 2.5% below the historical dividend 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 is 3.45. The current P/S Ratio is 3.03 based on 2020 Revenue estimate of $467M, Revenue per Share of $6.10 and a stock price of $18.51. The current ratio is 12% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably reasonable. The P/S Ratio cannot be ignored and it is the only different test results of reasonable and below the median. The rest of the testing show results of reasonable but above the median.
Is it a good company at a reasonable price? I own this stock and I think that it is a good company and I will continue to hold my shares. However, it is less than 1% of my portfolio. The current price would seem to be reasonable.
When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (2). The consensus would be a Strong Buy. The 12 month stock price consensus is $19.67. This would imply a total return of 10.16% with 6.27% from capital gains and 3.89% from dividends. For a tech company with a Buy recommendation, you would expect a higher 12 month price consensus.
See what analysts are saying on Stock Chase. Mostly they like this company. Brian Paradza Motley Fool reviewed this company and liked it. A writer on Simply Wall Street thinks that the company has a great balance sheet. A writer on Simply Wall Street thinks this stock is currently overbought. DFS Staff on DFS News took a look at this stock and say that technically, the Williams Percent Range says the stock is oversold..
Evertz Technologies Ltd is a Canadian provider of telecommunications equipment and technology solutions to the television broadcast and new-media industries. Evertz equipment is used in the production, post-production and transmission of television content. Its web site is here Evertz Technologies .
The last stock I wrote about was about was Onex Corp (TSX-ONEX, OTC-ONEXF) ... learn more. The next stock I will write about will be Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more on Monday, August 19, 2019.
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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Which do you like better, Evertz or Open Text, I don't see it listed as one of the stocks you follow. I already own Calian and would like something a little different.
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