I own this stock of Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE). I was following Newfoundland Capital Corp and Stingray Bought them out. Also, I read the blub on CEO, Eric Boyko. The site says he is an entrepreneur with nearly two decades of experience with start-ups. Mr. Boyko has extensive expertise in early stage business innovations.
When I was updating my spreadsheet, I noticed it has recovered well from the low of March 2020. At this time last year, I had a big loss on this stock. Now the Total Return is 6.54% with 2.57% from capital gains and 3.97% from dividends. This is not great, but I expect to do better in the future.
The dividend yields are moderate with dividend growth stopping. The current dividend yield is moderate (2% to 4%) at 3.86%. The 5 and 6 year median dividend yields are also moderate at 2.82% and 2.52%. Dividends were growing at a good rate (15% and over) prior to 2020. Then increases stopped. An analyst thinks that the dividends will be increased in 2023. The reason for the lower 2024 dividend estimate is fewer analysts giving estimates. This occurs sometimes.
The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2021 is 49% an this is fine. The 5 year coverage is 138% and this is too high. However, going forward, DPR for EPS is expected to be 44% in 2022 and 49% in 2023. The DPR for CFPS for 2021 is 19% with 5 year coverage at 25%. The DPR for Free Cash Flow for 2021 is 24% with 5 year coverage at 37%.
Debt Ratios are fine. The Long Term Debt/Market Cap for 2021 is 0.52. This is much better than last year when it was 1.05. The change is the recovery of the stock price. Debt has also gone down by 11%. The Liquidity Ratio for 2021 is 0.75. If you add in cash flow after dividends, it is 1.37. This is still low. The Debt Ratio for 2021 is 1.50. The Leverage and Debt/Equity Ratios for 2021 are 3.00 and 2.00.
The Total Return per year is shown below for years of 5 to 6 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 | 19.14% | 4.98% | 1.33% | 3.66% |
| 2014 | 6 | 1.43% | -1.58% | 3.01% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 18.06, 31.03 and 42.67. The corresponding 6 year ratios are 19.67, 27.94 and 35.56. The current P/E Ratio 11.44 based on a stock price of $7.78 and EPS estimate for 2022 of $0.68. The current ratio is below the 6 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $7.56. The 7 year low, median, and high median Price/Graham Price Ratios are 1.82, 2.12 and 2.43. The current P/GP Ratio is 1.03 based on a stock price of $7.78. This current ratio is below the 7 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 6 year median Price/Book Value per Share Ratio of 2.25. The current P/B Ratio is 2.08 based on a Book Value of $274.7M, Book Value per Share of $3.73 and a stock price of $7.78. The current ratio is 7.6% below the 6 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 6 year median Price/Cash Flow per Share Ratio of 10.76. The current ratio is 5.33 based on Cash Flow per Share estimate for 2022 of $1.46, Cash Flow of $107M and a stock price of $7.78. The current ratio is 50% below the 6 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical (6 years) median dividend yield of 2.52%. The current dividend yield is 3.86% based on dividends of $0.30 and a stock price of $7.78. The current dividend yield is 53% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I get a 5 year median dividend yield of 2.82%. The current dividend yield is 3.86% based on dividends of $0.30 and a stock price of $7.78. The current dividend yield is 37% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap. I only have 6 year and 5 year periods to deal with on this stock.
The 6 year median Price/Sales (Revenue) Ratio is 3.05. The current P/S Ratio is 1.95 based on Revenue estimate for 2022 of $293M, Revenue per Share of $3.98 and a stock price of $7.78. The current ratio is 36% below the 6 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 cheap. The dividend yield tests show this and it is confirmed by the P/S Ratio test. Most other testing is showing this as cheap also.
Is it a good company at a reasonable price? The stock price is reasonable, if not cheap. I am still excited about this stock and expect to do well in the longer term. However, this is a young company and therefore risky.
When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (4). The consensus would be a Strong buy. The 12 months stock price target consensus is $9.33. This implies a total return of 23.78% with 19.92% from capital gains and 3.86% from dividends based on a current price of $7.78.
One analyst said that it is on his watch list on Stock Chase. Christopher Liew on Motley Fool says it is a current smart buy. The Executive Summary on Simply Wall Street list 2 risks. A writer on Simply Wall Street thinks the company is taking some risks with its debt. A writer on Simply Wall Street. talks about the independent Chairman picking up more shares in the company.
Stingray Digital Group Inc is a music, media, and technology company. The company is a provider of curated direct-to-consumer and B2B services, including audio television channels, radio stations, SVOD content, 4K UHD television channels, karaoke products, digital signage, in-store music, and music apps. Its web site is here Stingray Digital Group Inc.
The last stock I wrote about was about was Loblaw Companies Ltd (TSX-L, OTC-LBLCF) ... learn more. The next stock I will write about will be BlackBerry Ltd (TSX-BB, NYSE-BB) ... learn more on Wednesday, August 4, 2021 around 5 pm. Today on my other blog I will write about Dividend Stocks August 2021 .... learn more on Tuesday, August 3, 2021 around 5 pm.
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