Is it a good company at a reasonable price? This stock seems to be to have a lot volatility, but TD says the Beta is just 0.63, but Globe and Mail says 1.34 (which is not particularly high). which means the stock is less volatile than the market. It is a small cap and it is into servicing the energy business. The energy business is boom and bust. I am keeping the shares I have, but I do not have much and I bought my shares with my fooling around money. The stock price is probably a bit high, but the dividend yield test is suggesting that it is relatively cheap.
I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). In 2011 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. I am using my fooling around money for this stock.
When I was updating my spreadsheet, I noticed that I have not done well with this stock, only earning a total return of 0.27% with a loss of 0.60% and 0.87% from dividends. However, this company has restarted their dividend payments and that is always a good sign. This company services the energy business, which is cyclical, so buying this stock, timing can change a lot.
If you had invested in this company in December 2013, for $1,004.01 you would have bought 147 shares at $6.83 per share. In December 2023, after 10 years you would have received $47.04 in dividends. The stock would be worth $305.76. Your total return would have been $352.80. This would be a total loss of 10.66% per year with 11.21% from capital loss and 0.55% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $6.83 | $1,004.01 | 147 | 10 | $47.04 | $305.76 | $352.80 |
If you had invested in this company in December 2018, for $1,000.00 you would have bought 1,000 shares at $1.00 per share. In December 2023, after 5 years you would have received $20.00 in dividends. The stock would be worth $2,080.00. Your total return would have been $2,100.00. This would be a total gain of 16.00% per year with 15.77% from capital gain and 0.22% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $1.00 | $1,000.00 | 1,000 | 5 | $20.00 | $2,080.00 | $2,100.00 |
The current dividend yield is moderate with dividends restarting. The current dividend yield is moderate (2% to 4% ranges) at 3.81%. The 5 and 10 year median dividend yields are 0%. There were no dividends from 2016 until 2022. The historical median dividend yield is 0.53% and it is low because of years of no dividends. The Historical median dividend when dividends were paid is 2.13%. They have restarted their dividends. The company increased the dividend by 100% from $0.01 to $0.02 in 2024.
The DPR for 2023 for Earnings per Share (EPS) is good at 9% with 5 year coverage at 3%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 4% with 5 year coverage at 2%. The DPR for 2023 for Free Cash Flow (FCF) is good at 25% with 5 year coverage at 6%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 8.70% | 3.28% |
| CFPS | 4.32% | 1.93% |
| FCF | 25.25% | 6.17% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.00 and currently at 0.00 as they have no long term debt. The Liquidity Ratio for 2023 is good at 2.88 and 3.44 currently. The Debt Ratio for 2023 is good at 3.32 and 3.69 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.43 and 0.43 and currently at 1.37 and 0.37.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.00 | 0.00 |
| Intang/GW | 0.16 | 0.18 |
| Liquidity | 2.88 | 3.44 |
| Liq. + CF | 3.19 | 3.97 |
| Debt Ratio | 3.32 | 3.69 |
| Leverage | 1.43 | 1.37 |
| D/E Ratio | 0.43 | 0.37 |
The Total Return per year is shown below for years of 5 to 26 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. |
|---|---|---|---|---|---|
| 2018 | 5 | 0.00% | 16.00% | 15.77% | 0.22% |
| 2013 | 10 | -20.57% | -10.66% | -11.21% | 0.55% |
| 2008 | 15 | -11.26% | 6.97% | 2.92% | 4.05% |
| 2003 | 20 | 3.72% | 20.30% | 9.64% | 10.66% |
| 1998 | 25 | 2.31% | 0.16% | 2.15% | |
| 1997 | 26 | -0.21% | -1.82% | 1.61% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 3.50, 4.96 and 6.43. The corresponding 10 year ratios are 0.53, 0.78 and 1.04. The corresponding historical ratios are 3.29, 6.70 and 10.00. The current P/E Ratio is 8.75 based on a stock price of $2.10 and EPS estimate for 2024 of $0.24. This ratio is above the high ratios of the 5 and 10 year median ratios. It is between the median and high ratios of the historical median ratios, which are probably a better choice for comparison. The problem is a number of earnings losses and that is why the ratios are so low. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $3.24. The 10-year low, median, and high median Price/Graham Price Ratios are 0.30, 0.48 and 0.67. The current P/GP Ratio is 0.65 based on a stock price $2.10. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10-year median Price/Book Value per Share Ratio of 0.82. The current ratio is 1.08 based on a Book Value of $52.3M, Book Value per Share of $1.94 and a stock price of $2.10. The current ratio is 31% above the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Cash Flow per Share Ratio of 4.73. The current ratio is 5.55 based on Cash Flow estimate for 2024 of $10.2M, Cash Flow per Share of $0.38 and stock price of $2.10. The current ratio is 17% above the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get an historical median dividend yield of 0.53%, but that includes a lot of 0% yields. The historical median dividend yield, just looking at yields, is 2.13%, so I will use that. The current dividend yield is 3.81%. This yield is 79% above the adjusted historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10 year median dividend yield is 0%, so I cannot do any testing here.
The 10-year median Price/Sales (Revenue) Ratio is 0.64. The current P/E Ratio is 0.73 based Revenue estimate for 2024 of $477.7M, Revenue per Share of $2.88 and a stock price of $2.10. The current ratio is 19% 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 looking like it is reasonable but above the median, but it could also be cheap. The historical dividend yield test is saying that the stock price is relatively cheap. The dividend yield is often a good indicator. However, the P/S Ratio test says the stock price is reasonable, but above the median. A lot of the rest of the testing is saying the stock price is reasonable but above the median.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2) and Hold (1). The consensus would be a Buy. Target price is 2.30 with a low of $2.26 and high of $2.33. The consensus price of $2.33 implies a total return of 14.76% with 10.95% from capital gains and $3.81% from dividends
There is only one entry on Stock Chase which is positive, but the recommendation is a Hold. Stock Chase gives this stock 3 stars out of 5. The company put out a press release on Newswire about their fourth quarter of 2024 results. There is no recent entry on Motley Fool for this company with the last review in 2015. Simply Wall Street has a number of recent reviews.
Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street via Yahoo Finance reviews dividends for this company. Here is another report from Simply Wall Street via Yahoo Finance. They seem to be only ones writing about this company. They give three warnings of dividend of 4.1% is not well covered by cash flows; profit margins (9.4%) are lower than last year (16.7%); and does not have a meaningful market cap (CA$53M). Simply Wall Street gives this stock 2 and one half stars out of 5.
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. 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 13, 2024 around 5 pm.
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