I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. 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. My TFSA account money is my fooling around money. I also do not have much invested in this company.
When I was updating my spreadsheet, I noticed last year my total return to date was a loss of 32.84% per year. At the end of April this year, my total return is lower with a loss of 17.94% per year. It is not surprise that the company has problems as it provides technologies for the oil and gas sector.
The dividends are none existent currently for this stock. They have not paid a dividend since 2016. Over the past 16 years, they have increased their dividends 6 times and decreased it 4 times. They also suspended the dividends in 2010, but that suspension just lasted a year. They have had an earnings loss in 5 of the last 6 years. They need to start having a profit in order to restart dividends.
Debt Ratios are all good. The Long Term Debt/Market Cap Ratio for 2021 is 0.46. The Long Term debt can be paid with cash flow in less one year. Both these ratios are good. The Liquidity Ratio for 2021 is 4.42. The Debt Ratio for 2021 is 3.07. The Leverage and Debt/Equity Ratios for 2021 are 1.48 and 0.48.
The Total Return per year is shown below for years of 5 to 23 to the end of 2020. 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. |
|---|---|---|---|---|---|
| 2015 | 5 | 0.00% | -25.70% | -25.70% | 0.00% |
| 2010 | 10 | 0.00% | -14.88% | -18.47% | 3.59% |
| 2005 | 15 | 0.00% | -12.55% | -15.77% | 3.22% |
| 2000 | 20 | -2.83% | -7.69% | 4.86% | |
| 1997 | 23 | -4.22% | -8.10% | 3.88% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are negative and therefore unusable. The corresponding 10 year ratios are 2.08, 3.32 and 4.15. The corresponding historical ratios are 3.08, 8.27 and 10.19. The current ratio is 19.14 based on a stock price of $0.67 and EPS estimate for 2021 of $0.04. This stock price testing suggests that the stock price is relatively expensive. However, this is not a good test because of EPS losses, especially over the past 10 years.
I get a Graham Price of $1.00. The 10 year low, median, and high median Price/Graham Price Ratios are 0.54, 0.72 and 0.95. The current P/GP Ratio is 0.67 based on a stock price of $0.67. This ratio is between the low and median P/GP Ratios. 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 1.13. The current P/B Ratio is 0.52 based on a stock price of $0.67, Book Value of $35.5M, and a Book Value per Share of $1.28. The current ratio is 54% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median Price/Cash Flow per Share Ratio of 4.25. The current P/CF Ratio is 1.51 based on Cash Flow of the past 12 months of $8.81, Cash Flow per Share of $0.32 and a stock price of $0.67. The current ratio is 64% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I cannot do any dividend yield testing as dividends have been suspended.
The 10 year median Price/Sales (Revenue) Ratio is 0.69. The current P/S Ratio is 0.50 based on Revenue estimate for 2021 of $37.1M, Revenue per Share of $1.33 and a stock price of $0.67. The current ratio is 31% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably relatively cheap. I have some good tests that show that of P/S Ratio, P/B Ratio and P/CF Ratio. The P/GP Ratio tests show the stock price as reasonable and below the median.
Is it a good company at a reasonable price? First, I think that the stock price is relatively cheap. This is a small cap that services the Oil and Gas industry, so is very risky. I am using my fooling around money to invest in this stock, which I feel is appropriate.
When I look at analysts’ recommendations, I find only one recommendation and it is a Hold. The 12 month stock price consensus is $0.50. This implies a total loss of 25% and all a capital loss.
The company talks about their 2020 year end results on Cision. The executive summary on Simply Wall Street gives this stock 3 stars out of 5 and list one risk. A writer on Simply Wall Street looks at CEO compensation.
McCoy Global Inc is a provider of equipment and technologies used for making up threaded connections in the oil and gas industry. The company is engaged in the design, production, and distribution of capital equipment used in both off-shore and land drilling markets to handle makeup and measure tubular products, such as casing. 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 Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more on Monday, May 10, 2021 around 5 pm.
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