Is it a good company at a reasonable price? I still like this company. I still believe I will do well with this company in the long term. However, this is tech and so is a risky investment. You should not be investing in this company money you cannot afford to lose. The stock is testing as cheap currently. However, the stock market has been declining over the past couple of days, so who knows.
I own this stock of Evertz Technologies Ltd (TSX-ET, OTC-EVTZF). I got the idea to investigate this stock from a G&M Article. It looked like something I might want to try out. This stock came up in a stock screen filter article that was looking for reliable dividend payers. That is companies that have reliable profits big enough to comfortably cover their dividend payments. I have made several purchases of this stock since my initial purchase in 2011. I have a total return of 4.43% with a capital loss of 2.61% and dividends of $7.04%.
When I was updating my spreadsheet, I noticed that this is another small cap stock I was trying out. I have not made much money here. My total return after almost 13 year is 4.43% per year with a capital loss of 2.61% and dividends of 7.04%.
If you had invested in this company in December 2013, for $1,015.08 you would have bought 66 shares at $15.38 per share. In December 2023, after 10 years you would have received $662.64 in dividends. The stock would be worth $919.38. Your total return would have been $1,582.02. This would be a total return of 5.78% per year with 0.99% from capital loss and 6.77% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $15.38 | $1,015.08 | 66 | 10 | $662.64 | $919.38 | $1,582.02 |
The current dividend yield is good with dividend growth low. The current dividend is good (5% to 6% ranges) at 6.27%. The 5 year median dividend yield is also good at 5.01%. The 10 year and historical median dividend yields are moderate (2% to 4% ranges) at 4.50% and 4.04%. The dividend increases are low (below 8% per year) at 1.4% per year for the past 5 years. The last dividend increase was in 2024 and it was for 2.6%.
The Dividend Payout Ratios (DPR) are high. The DPR for 2023 for Earnings per Share (EPS) is high at 85% with 5 year coverage at 130%. The DPR for 2023 for Cash Flow per Share (CFPS) is high at 55% with 5 year coverage at 85%. I prefer this DPR to be 40% or less. The DPR for 2023 for Free Cash Flow (FCF) is high 73% with 5 year coverage at 108%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 84.62% | 129.95% |
| CFPS | 54.92% | 84.97% |
| FCF | 72.75% | 108.13% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.06 and currently at 0.07. The Liquidity Ratio for 2023 is good at 2.01 and 2.01 currently. The Debt Ratio for 2023 is good at 2.22 and 2.22 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.82 and 0.82 and currently at 1.82 and 0.82.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.06 | 0.07 |
| Intang/GW | 0.02 | 0.02 |
| Liquidity | 2.01 | 2.01 |
| Liq. + CF | 2.44 | 2.23 |
| Debt Ratio | 2.22 | 2.22 |
| Leverage | 1.82 | 1.82 |
| D/E Ratio | 0.82 | 0.82 |
The Total Return per year is shown below for years of 5 to 17 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 | 1.35% | 4.15% | -2.96% | 7.11% |
| 2013 | 10 | 1.87% | 5.78% | -0.99% | 6.77% |
| 2008 | 15 | 6.73% | 6.39% | 0.09% | 6.30% |
| 2006 | 17 | 8.79% | 5.73% | 0.14% | 5.59% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.08, 15.06 and 17.87. The corresponding 10 year ratios are 14.51, 1604 and 19.13. The corresponding historical ratios are 14.16, 17.20 and 19.45. The current P/E Ratio is 13.23 based on a stock price of $12.44 and EPS estimate for 2025 of $0.94. 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 $8.56. The 10-year low, median, and high median Price/Graham Price Ratios are 1.49, 1.70 and 1.93. The current P/GP Ratio is 1.45 based on a stock price of $12.44. 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 3.77. The current P/B Ratio is 3.59 based on a Book Value of $264M, Book Value per Share of $3.47 and a stock price of $12.44. The current ratio is 4.7% 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 13.87. The current P/CF Ratio is 9.28 based on Cash Flow per Share estimate for 2025 of $1.34, Cash Flow of $102M and a stock price of $12.44. The current ratio is 33% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 4.04%. The current dividend yield is 6.27% based on dividends of $0.78 and a stock price of $12.44. The current ratio is 55% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median dividend yield of 4.50%. The current dividend yield is 6.27% based on dividends of $0.78 and a stock price of $12.44. The current ratio is 39% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 2.92. The current P/S Ratio is 1.78 based on Revenue estimate for 2025 of $531M, Revenue per Share of $6.97 and a stock price of $12.44. The current ratio is 39% 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 cheap. The dividend yield tests are saying that the stock price is cheap. The P/S Ratio test confirms this. Most of the other testing is saying that the stock price is cheap,
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2). The consensus would be a Strong Buy. The 12 months stock price consensus is $17.17 with a high of $17.50 and low of $17.00. The consensus stock price of $17.17 implies a total return of 44.29% with 38.02% from capital gains and 6.27% from dividends.
The two recommendations on Stock Chase in 2024 are buys. However, it did have a Do Not Buy last year because it missed EPS estimates. Stock Chase gives this stock 3 stars out of 5. Christopher Liew on Motley Fool says this stock will have a tailwind if interest rates are cut. Jitendra Parashar on Motley Fool says to buy this TSX Growth stock. The company put out a press release via Newsfile about their fourth quarter of 2024 results.
Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street gives this stock 4 stars out of 5. It has one warning of unstable dividend track record.
Evertz Technologies Ltd is a Canadian provider of telecommunications equipment and technology solutions to the television broadcast and new-media industries. More than half of the firm's revenue is generated in the United States. Its web site is here Evertz Technologies Ltd .
The last stock I wrote about was about was Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more. The next stock I will write about will be Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more on Friday, August 9, 2024 around 5 pm. Tomorrow on my other blog I will write about Something to Buy August 2024.... learn more on Thursday, August 8, 2024 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
No comments:
Post a Comment