I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). I decided to try out McCoy in 2011. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
When I was updating my spreadsheet, I noticed I am still losing money on this stock. It is down 33.6% per year. It serves the oil and gas industry, so I do not see a recovery anytime soon. I knew what I was getting into when I bought this stock. It is in my TFSA account, which is my fooling around money account. There is insider buying.
See their recent update. They are not only cutting staff and salaries, the salaries cut also affects senior levels, Board Members and CEO. They sound in this update as a very responsible company.
The company started to pay dividends in 2004. This stock stop paying dividends in 2015. This is not the first time to stop dividends as they paid no dividends in 2010. The dividend yields were all over the place, but are were basically low (Under 2%) to moderate (2% to 4% ranges).
The Dividend Payout Ratios (DPR) are not currently relevant as they are not paying dividends. They tried paying what they could afford, but they did have years of earnings losses.
Debt Ratios are very good. The long Term Debt/Market Cap is still good at 0.34 considering that the stock has fallen 33% year to date after falling 40% in 2019. The Liquidity Ratio for 2019 is very good at 2.98 in 2019. The Debt Ratio is also very good at 2.74 in 2019. The Leverage and Debt/Equity Ratios are also very good at 1.58 and 0.58 for 2019
The Total Return per year is shown below for years of 5 to 22 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 | -30.00% | -31.76% | -32.24% | 0.48% |
| 2009 | 10 | -3.89% | -0.64% | -8.38% | 7.74% |
| 2004 | 15 | 18.52% | -4.68% | -9.76% | 5.08% |
| 1999 | 20 | -1.38% | -6.07% | 4.69% | |
| 1997 | 22 | -3.82% | -7.52% | 3.69% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative and therefore useless. The corresponding 10 year ratios are 5.63, 8.27 and 10.19. The corresponding historical ratios are 4.15, 8.43 and 10.20. The current P/E Ratio is 3.33 based on a stock price of $0.40 and 2020 EPS of $0.12. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $1.92. The 10 year low, median, and high median Price/Graham Price Ratios are 0.54, 0.80 and 1.17. The current P/GP Ratio is 0.21 based on a stock price of $0.40. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median Price/Book Value per Share Ratio of 1.22. The current P/B Ratio is 0.29 based on a book Value of 37.8M, Book Value per Share of $1.37, and a stock price of $0.40. The current P/B Ratio is some 76% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.
I cannot do any of the median dividend yield tests as the stock no long has a dividend.
The 10 year median Price/Sales (Revenue) Ratio is 0.81. The current P/S Ratio is 0.29 based 2020 Revenue estimate of $38.1M, Revenue per Share of $1.38 and a stock price of $0.40. The current P/S Ratio is some 64% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is relatively cheap. I like the P/S Ratio test best and it says that the stock price is relatively cheap. There are no problems with the other tests that I could complete.
Is it a good company at a reasonable price? The company is currently cheap for a reason. The company provides services to the Oil and Gas industry which has been decimated. You really lose on companies when they go bankrupt. Because of the company’s debt ratios, I believe it will survive. This is highly speculative.
When I look at analysts’ recommendations, I find Hold (2). The consensus would be a Hold. The 12 month stock price consensus is $0.55. This implies a total return of 37.50% all from capital gains.
This site of Stock Chase only has old entries. This is not surprising as it is a small cap that is not doing well. A writer on Simply Wall Street talked about this company in 2019. They said they would like it better if there were insiders buying. There has been insider buying both in 2019 and 2020. A writer on Simply Wall Street also looked at the debt position of this company. It is always interesting to look at the Executive Summary of a stock on Simply Wall Street. Elias Foscolos on CanTech Letter says why he is cautious about this company. The company says on News Wire what action they are taking in connection with the Covid 19 situation.
McCoy Global provides technologies designed to support wellbore integrity and assist with collecting critical data for the global energy industry. The Corporation operates internationally through direct sales and distributors with operations in Canada, the United States of America and the United Arab Emirates. . Its web site is here McCoy Global Inc.
The last stock I wrote about was about was Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more. The next stock I will write about will be TFI International (TSX-TFII, OTC-TFIFF) ... learn more on Monday, May 4, 2020 around 5 pm.
Also, on my book blog I have put a review of the book Upheaval by Jared Diamond learn more...
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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