Is it a good company at a reasonable price? I still like this company. I am not buying any more at the present as I think I have enough of this stock. Since it is a Tech stock, it is risky and that is why it is in my TFSA account. The stock price seems within the reasonable range, but probably at the top end of this range.
I own this stock of Calian Group Ltd (TSX-CGY, OTC-CLNFF). This is an interesting company with a very nice dividend. This stock came up on a Globe Investor site. The Globe Investor Number Cruncher is an investment column about screening for stocks and funds. They did one on companies with little to no debt. I also noted that the Financial Blogger has this stock on his Top Ten Canadian Dividend Stocks list.
When I was updating my spreadsheet, I noticed that although the stock is down from last year, I still have made a decent total return on this stock. I have had this stock for 12.6 years and my total return is 14.40% per year with 10.47% per year from capital gains and 3.93% from dividends. I first bought this stock for my trading account, but my last 3 purchases have been for my TFSA, because this stock fits better into this account.
If you had invested in this company in December 2013, for $1,011.00 you would have bought 50 shares at $20.22 per share. In December 2023, after 10 years you would have received $560.00 in dividends. The stock would be worth $2,864.50. Your total return would have been $3,424.50. This is a total return would be a total return of 14.70% per year with 10.98% from capital gain and 3.73% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $20.22 | $1,011.00 | 50 | 10 | $560.00 | $2,864.50 | $3,424.50 |
If you had invested in this company in December 1993, for $1,004.48 you would have bought 146 shares at $6.88 per share. In December 2023, after 30 years you would have received $2,741.88 in dividends. The stock would be worth $8,364.34. Your total return would have been $11,106.22. This is a total return would be a total return of 9.55% per year with 7.32% from capital gain and 2.23% from dividends. If you are earning 8% or more per year total return, your stock is doing well.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $6.88 | $1,004.48 | 146 | 30 | $2,741.88 | $8,364.34 | $11,106.22 |
This company is still growing nicely and it is expected to continue to grow over the next 12 months and this year as show in the last column.
| Year | Item | Tot. Growth | Per Year | 12 Mths |
|---|---|---|---|---|
| 5 | Revenue Growth | 116.17% | 16.67% | 3.34% |
| 5 | AEPS Growth | 53.33% | 8.92% | 7.54% |
| 5 | Net Income Growth | 14.87% | 2.81% | 5.30% |
| 5 | Cash Flow Growth | 125.56% | 17.67% | |
| 5 | Dividend Growth | 0.00% | 0.00% | 0.00% |
| 5 | Stock Price Growth | 70.10% | 11.21% | 7.33% |
| This Year | ||||
| 10 | Revenue Growth | 183.31% | 10.98% | 14.64% |
| 10 | AEPS Growth | 99.42% | 7.15% | 33.33% |
| 10 | Net Income Growth | 44.66% | 3.76% | 58.86% |
| 10 | Cash Flow Growth | 353.00% | 16.31% | |
| 10 | Dividend Growth | 0.00% | 0.00% | 0.00% |
| 10 | Stock Price Growth | 149.17% | 9.56% | 7.33% |
The current dividend yield is moderate with dividend growth non-existent. The current dividend yield is moderate (2% to 4% ranges) at 2.07%. The 5 year median dividend yield is low (below 2%) at 1.85%. The 10 year and historical median dividend yields are moderate at 3.57% and 3.65%. The dividends have been flat since 2014. Analysts do not see any dividend increase in the near future.
The Dividend Payout Ratios (DPR) are fine. The DPR for 2023 for Earnings per Share (EPS) is fine at 70% with 5 year coverage at 65%, but the one for AEPS is more important. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 32% with 5 year coverage at 37%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 20% with 5 year coverage at 24%. The DPR for 2023 for Free Cash Flow (FCF) is good at 27% with 5 year coverage at 46%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 69.57% | 64.81% |
| AEPS | 32.46% | 36.62% |
| CFPS | 19.68% | 23.70% |
| FCF | 27.23% | 45.91% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.06. The Liquidity Ratio for 2023 is a bit low at 1.36. If you added in Cash Flow after dividends, the ratio is fine at 1.58. The Debt Ratio for 2023 is good at 2.82. The Leverage and Debt/Equity Ratios for 2023 are good at 1.78 and 0.78.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.06 | 0.06 |
| Intang/GW | 0.39 | 0.25 |
| Liquidity | 1.36 | 1.36 |
| Liq. + CF | 1.58 | 1.51 |
| Debt Ratio | 2.28 | 2.28 |
| Leverage | 1.78 | 1.78 |
| D/E Ratio | 0.78 | 0.78 |
The Total Return per year is shown below for years of 5 to 30 to the end of 2023. 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% | 17.26% | 14.27% | 2.99% |
| 2012 | 10 | 0.00% | 14.70% | 10.98% | 3.73% |
| 2007 | 15 | 4.98% | 17.78% | 11.56% | 6.22% |
| 2002 | 20 | 9.89% | 11.98% | 8.08% | 3.90% |
| 1997 | 25 | 16.81% | 12.01% | 4.80% | |
| 1992 | 30 | 9.55% | 7.32% | 2.23% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 33.69, 37.65 and 34.94. The corresponding 10 year ratios are 13.37, 14.44 and 15.58. The corresponding historical ratios are 10.14, 11.49 and 14.20. The current P/E Ratio is 22.83 based on a stock price of $54.10 and EPS estimate for 2024 of $2.37. This ratio is higher than the high ratios for the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. (Note: the 5 year ratios are high mainly because a drop in earnings. Stock price will only fall so far because of a drop in earnings.)
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 17.57, 15.35 and 19.42. The corresponding 10 year ratios are 12.76, 13.16 and 14.59. The current P/AEPS is 11.76 based on a stock price of $54.10 and AEPS estimate for 2024 of $4.60. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $53.64. The 10-year low, median, and high median Price/Graham Price Ratios are 1.07, 1.12 and 1.26. The current P/GP Ratio is 1.01 based on a stock price of $54.10. The current ratio is below the low ratio of the 10 year median ratios. 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 2.15. The current P/B Ratio is 1.95 based on a stock price of $54.10, Book Value of $328M and Book Value per Share of $27.80. The current P/B Ratio is 9% 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 12.50. The current P/CF Ratio is 14.52 based on a stock price of $54.10, Cash Flow estimate of $44M and Cash Flow per Share of $3.72. The current ratio is 16% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get an historical median dividend yield of 3.65%. The current dividend yield is 2.07% based on dividends of $1.12 and a stock price of $54.10. The current yield is 43% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 3.57%. The current dividend yield is 2.07% based on dividends of $1.12 and a stock price of $54.10. The current yield is 42% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
The 10-year median Price/Sales (Revenue) Ratio is 0.77. The current P/S Ratio is 0.85 based on Revenue estimate for 2024 of $755M, Revenue per Share of $63.91 and a stock price of $54.10. The current ratio is 9.6% 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 reasonable but at the top of that range. The dividend yield tests are saying the stock price is expensive, but these tests really only work on dividend growth stocks and this stock’s dividends are flat. The P/S Ratio test says the stock price is reasonable but above the median. I think that the P/AEPS Ratio, P/GP Ratio and P/B Ratios tests are good and they say that the stock price is cheap to reasonable.
When I look at analysts’ recommendations, I find Strong Buy (3) and Buy (4). The consensus would be a Strong Buy. The 12 month stock price consensus is $71.57 with a high of $78.00 and low of $65.00. The consensus price of $71.57 implies a total return of 34.36% with 32.29% from capital gains and 2.07% from dividends.
The last recommendation on Stock Chase is a hold. Stock Chase gives this stock 3 stars out of 5. It is not on any dividend list I follow. Robin Brown on Motley Fool think this stock is undervalued and good purchase for your TFSA. Robin Brown on Motley Fool thinks it is a good time to buy this underfollowed stock. Robin Brown seems to be the only one on Motley Fool following this stock. The company put out a press release on Globe Newswire about their fourth quarter in 2023.
Simply Wall Street on Yahoo Finance review this stock. They have one warning of large one-off items impacting financial results for this stock. Simply Wall Street gives this stock 4 stars out of 5.
Calian Group Ltd operates through four segments namely Advanced Technologies, Healthcare, Learning, and Information Technology. It generates maximum revenue from the Health segment. 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 Friday, January 12, 2024 around 5 pm. Tomorrow on my other blog I will write about Danish Ghazi.... learn more on Thursday, January 11, 2024 around 5 pm.
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