Is it a good company at a reasonable price? This company is providing services to the energy business and because of that it has booms and busts. I still find this company interesting, so I will hold on to my shares. However, I have invested much and my investing money came from my fooling around money.
I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). I decided in 2011 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.
When I was updating my spreadsheet, I noticed my total return of April 30, 2023 is not as bad as last year. This total return is a loss of 2.70% per year. This includes a capital loss of 3.36% and dividends of 6.66%. Last year the loss was 9.40%. I have had this stock for 12 years and it is from my fooling around money in the TFSA.
If you had invested in this company in December 2012, for $1,001.18 you would have bought 226 shares at $4.43 per share. In December 2022, after 10 years you would have received $113.00 in dividends. The stock would be worth $214.70. Your total return would have been $327.70.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $4.43 | $1,001.18 | 226 | 10 | $113.00 | $214.70 | $327.70 |
However, if you had invested in this company in December 2019, for $1,000.20 you would have bought 1667 shares at $0.60 per share. In May 2023, after almost 3 years you would have received $0.00 in dividends. The stock would be worth $1,633.66. Your total return would have been $1,633.66.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $0.60 | $1,000.20 | 1,667 | 3 | $0.00 | $1,633.66 | $1,633.66 |
This company has not paid a dividend since 2015. I do not know when it might pay a dividend again.
Debt Ratios are good. The Long Term Debt/Market Cap Ratio is good and low at 0.08. The Liquidity Ratio is high and good at 3.01. The Debt Ratio is high and good at 2.98. The Leverage and Debt/Equity Ratios are low and good at 1.50 and 0.50.
The Total Return per year is shown below for years of 5 to 25 to the end of 2022. 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. |
|---|---|---|---|---|---|
| 2017 | 5 | 0.00% | -7.33% | -7.33% | 0.00% |
| 2012 | 10 | 0.00% | -12.91% | -14.27% | 1.36% |
| 2007 | 15 | 0.00% | -4.40% | -7.48% | 3.08% |
| 2002 | 20 | 0.00% | 20.56% | 6.90% | 13.65% |
| 1997 | 25 | 0.00% | -2.47% | -4.92% | 2.45% |
This stock is up some 61% to date. This will change the Total Return over the past 25 years as shown below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2018 | 5 | 0.00% | 8.88% | 8.88% | 0.00% |
| 2013 | 10 | 0.00% | -13.42% | -13.90% | 0.47% |
| 2008 | 15 | 0.00% | 5.20% | 0.84% | 4.36% |
| 2003 | 20 | 0.00% | 19.66% | 7.97% | 11.69% |
| 1998 | 25 | 0.00% | 1.39% | -1.07% | 2.45% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 2.13, 3.05 and 3.97. The corresponding 10 year ratios are 0.53, 0.78 and 1.04. The corresponding historical ratios are 3.08, 7.31 and 10.09. The current ratio is 4.78 based on a stock price of $1.53 and EPS estimate for the last 12 months of 0.32. The 10 year ratios are low because of earning losses, so I am using the historical median P/E Ratios. The current ratio is below the low and median ratios of the historical median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $3.84 . The 10-year low, median, and high median Price/Graham Price Ratios are 0.37, 0.62 and 0.86. The current P/GP Ratio is 0.40 based on a stock price of $1.53. This ratio is between the low and median ratios of the 10 year median 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 0.89. The current P/B Ratio is 0.75 based on a stock price of $1.53, Book Value of $52.3M, and a Book Value per Share of $2.05. The current ratio is 16% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 6.32. The current P/CF Ratio is 9.39 based on a stock price of $1.53, Cash Flow per Share of $0.25, and Cash Flow for the last 12 months of $6.33. The current ratio is 49% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. However, the 10 year median ratio is low because of past negative cash flows.
I cannot do any dividend testing as this company has suspended their dividends as of 2015.
The 10-year median Price/Sales (Revenue) Ratio is 0.64. The current P/S Ratio is 0.65 based on Revenue for the last 12 months of $60M, Revenue per Share of $2.37 and a stock price of $1.53. The current ratio is 6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
Results of stock price testing is that the stock price is probably still reasonable. I cannot do dividend yield tests because the stock has suspended dividends. The P/S Ratio test says stock price is reasonable but above the median. Most of the other testing, except for the P/CF says the stock price is reasonable and below the median. There are problems with P/E Ratio and P/CF Ratio testing due to negative values.
When I look at analysts’ recommendations, I find very little in the way of analysts following this stock. The site that seems to be the most up to date is Yahoo and they have a Strong Buy (1). The consensus would be a Strong Buy. Other sites seem to be giving it a Hold (1) recommendation, but some of these seem out of date. But, take these together and you have a Buy consensus.
One site of Investing.com seems to be giving a current 12 months stock price forecast and it is for a decline in price to $1.25. This implies a total loss of 18%, all a capital loss based on a stock price of $1.53. Alpha Spread gives this stock a Relative Value of $1.17 CDN$, and a stock price over valued by 23% based on the current price of $1.53. It also gives a 12 months stock price consensus of $1.25. (However, this stock price looks suspicious like the price given last year!)
When I look at analysts’ recommendations last year, I found a Strong Buy (1) on Yahoo Finance. A Hold (1) on WSJ. Alpha Spread give a Discounted Cash Flow (DCF) Value of $1.46 CDN$ on Alpha Spread. I got a 12 month Stock Price on Alpha Spread of $1.25. This implies a total return of 27.6% all from capital gains based on a stock price of $0.98. What happened was a stock price move to $1.53 and total return of 56%.
Last recommendation on Stock Chase was in October 2022 and it was a Do Not Buy. Brendan Caldwell says energy services will be in demand, but he does not know much about this company. Stock Chase gives this stock 3 stars out of 5. A Bay Street article on Yahoo in April 2023 said that this stock was in play because of its FMS technology. McCoy Global announced on Newswire significant orders for their technology. The company put out a press release on Newswire about their 2022 results.
Simply Wall Street via Yahoo Finance reviews this stock in May 2023. Simply Wall Street via Yahoo Finance looked at this stock in March 2023. Simply Wall Street gives 2 warnings on this stock of high level of non-cash earnings; and does not have a meaningful market cap (CA$45M).
McCoy Global Inc is a provider of equipment and technologies to support tubular running operations, enhance wellbore integrity and assist with collecting critical data for the global energy industry. It is engaged in the design, production and distribution of capital equipment to support tubular running operations, enhance wellbore integrity and to support capital equipment sales through aftermarket products and services such as technical support, consumables and replacement parts. 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 15, 2023 around 5 pm.
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