I own this stock of Calian Group Ltd (TSX-CGY, OTC-CLNFF). I first bought this stock in 2011 and then more in 2012 and 2016. I have made a return of 15.21% per year with 10.49% per year from capital gains and 4.72% per year from dividends. For the stock I bought in 2011, I am making a yield of 6.19% on my original purchase price. For the stock I bought in 2016, I am making a yield of 4.49% on my original purchase price.
When I was updating my spreadsheet, I noticed that they stop dividend increases in 2013, 7 years ago. This stock can no longer be considered a dividend growth company.
The dividend yields on this stock has fluctuated, but has mostly been in the moderate range (2% to 4% range). The current dividend yield is 2.90%, with 5, 10 and historical yields at 4.28, 5.31% and 4.28%. They stopped growth their dividends in 2013. The increases were probably stop because the DPR for EPS was getting too high.
The Dividend Payout Ratios are fine, but probably a bit high for this sort of company. The DPR for EPS for 2019 is 44% with 5 year coverage at 57%. The DPR for CFPS for 2019 is 34% with 5 year coverage at 37%. The DPR for Free Cash Flow for 2019 is 84% with 5 year coverage at 90%.
Debt Ratios are all good. In 2019 is the first year for long term debt. The Long Term Debt/Market Cap Ratio for 2018 is 0.05. The Liquidity Ratio for 2019 is 1.85 with 5 year median at 2.41. The Debt Ratio for 2019 is 2.44 with 5 year median at 2.99. The Leverage and Debt/Equity Ratios for 2019 are 1.69 and 0.69 with 5 year median at 1.50 and 0.50.
The Total Return per year is shown below for years of 5 to 25 to the end of 2019. 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. |
|---|---|---|---|---|---|
| 2014 | 5 | 0.00% | 18.28% | 13.49% | 4.79% |
| 2009 | 10 | 5.76% | 12.30% | 7.09% | 5.20% |
| 2004 | 15 | 11.46% | 13.27% | 8.47% | 4.80% |
| 1999 | 20 | 12.51% | 15.44% | 11.07% | 4.36% |
| 1994 | 25 | 11.59% | 8.81% | 2.78% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.66, 13.02 and 14.20. The corresponding 10 year Ratios are 10.30, 11.83 and 13.72. The corresponding historical ratios are 9.32, 11.17 and 12.69. The current P/E Ratio is 16.08 based on a stock price of $38.60 and 2020 EPS estimate of $2.40. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $27.99. The 10 year low, median, and high median Price/Graham Price Ratios are 0.97, 1.07 and 1.17. The current P/GP Ratio is 1.38 based on a stock price of $38.60. 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 2.66 based on a Book Value of $115M, Book Value per Shae of $14.51 and a stock price of $38.60. The current ratio is 21% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 4.28%. The current dividend yield is 2.90% based on a stock price of $38.60 and dividends of $1.12. The current dividend yield is 32% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median dividend yield is 5.41%. With the current dividend yield at 2.90%, the current yield is some 45% below the 10 year median yield. This stock price testing suggests that the stock price is relatively expensive.
The 10 year median Price/Sales (Revenue) Ratio is 0.64. The current P/S Ratio is 0.81 based on 2020 Revenue estimate of $378M, Revenue per Share of $47.67 and a stock price of $38.60. The current ratio is 27% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.
Results of stock price testing is that the stock price is relatively expensive. All the testing I have done shows that the stock is relatively expensive.
Is it a good company at a reasonable price? I still think that this is a good company, and I will continue to hold this stock. However, I would be happier if they again were raising the dividends. At the current time, I think that this stock is relatively expensive so it would not be a good time to buy at this point.
When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (2). The consensus would be a Buy. The 12 month stock price consensus s $43.50. This implies a total return of 15.60% with 2.90% from dividends and 12.69% from capital gains based on a current price of $38.60.
See what analysts are saying on Stock Chase. A recent analyst said it was slow, steady, and cheap. Nikhil Kumar on Motley Fool thinks the stock is fairly valued. Kevin Ford, CEO on YouTube talks about this company. A writer on Simply Wall Street says that the current P/E Ratio of 15.57 is in line with its industry’s average. The company, via Globe Newswire announced a Saulteaux Tribal Nation Partnership.
Calian Group Ltd is a Canadian company offering professional services. It has two divisions, Business and Technology Services (BTS) Division and Calian's Systems Engineering Division (SED). 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 January 13, 2020 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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