Is it a good company at a reasonable price? It is always a good sign when a stock restarts their dividend payments which this company did in 2023. They have had one increase since then. I plan to keep the shares that I have. I have no current plans to buy any more, but then I have no current plans to buy any stock. The stock price may be at a reasonable price, but could take off if it broke out of $3.50 resistance level.
I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). 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.
When I was updating my spreadsheet, I noticed I have not done well with this stock, but better than last year. This stock was bought with my fooling around money. Last year my total return after 13 was 0.27% with a capital loss of 0.60% and dividends of 0.87%. This year is better with total return of 5.96% with 5.08% from capital gains and 0.88% from dividends after 14 years. I seemed to have paid too much for this stock in 2011 and 2014.
When checking on insiders that I follow, I found that everyone that I follow, except for the Chairman, bought lots of stock over the past year.
If you had invested in this company in December 2014, for $1,003.80 you would have bought 239 shares at $4.20 per share. In December 2024, after 10 years you would have received $47.80 in dividends. The stock would be worth $678.76. Your total return would have been $726.56. This would be a total loss of 3.27% per year with 3.84% from capital loss and 0.57% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $4.20 | $1,003.80 | 239 | 10 | $47.80 | $678.76 | $726.56 |
However, if you had invested in this company in December 2019, for $1,000.20 you would have bought 1,667 shares at $0.60 per share. In December 2024, after 5 years you would have received $166.70 in dividends. The stock would be worth $4,734.28. Your total return would have been $4,900.98. This would be a total gain of 37.49% per year with 36.47% from capital gain and 1.02% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $0.60 | $1,000.20 | 1,667 | 5 | $166.70 | $4,734.28 | $4,900.98 |
The current dividend yield is moderate with dividend growth restarting. The current dividend yield is moderate (2% to 4% ranges) at 3.21%. The 5, 10 and historical dividend yields are low at 0%, 0% and 0.56%. This is because dividends were suspended in 2015 and then reinstated in 2023. The 5 year dividend growth cannot be calculated because 5 years ago there were no dividends. Dividends in 2023 when from $0.01 to $0.02 to $0.025 between 2023 to 2025. The last dividend increase was in 2025 and it was for 25%.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 25%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 14%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 14% with 5 year coverage at 14%. The DPR for 2024 for Free Cash Flow (FCF) is good at 42%. There is no agreement on what the FCF is. Also, the 5 year ratios do not matter as they do not cover 5 years, so they are low.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 25.00% | 10.87% |
| CFPS | 13.61% | 6.66% |
| FCF | 41.73% | 16.73% |
Debt Ratios are very good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.00 and currently at 0.00 as they have no long term debt. The Liquidity Ratio for 2024 is good at 2.58 and 2.77 currently. The Debt Ratio for 2024 is good at 3.09 and 3.40 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.48 and 0.48 and currently at 1.42 and 0.42.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.00 | 0.00 |
| Intang/GW | 0.14 | 0.11 |
| Liquidity | 2.58 | 2.77 |
| Liq. + CF | 2.73 | 2.99 |
| Debt Ratio | 3.09 | 3.40 |
| Leverage | 1.48 | 1.42 |
| D/E Ratio | 0.48 | 0.42 |
The Total Return per year is shown below for years of 5 to 27 to the end of 2024. 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. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | 37.49% | 36.47% | 1.02% |
| 2014 | 10 | -8.76% | -3.27% | -3.84% | 0.57% |
| 2009 | 15 | 6.76% | 8.43% | 4.63% | 3.80% |
| 2004 | 20 | 0.00% | 2.28% | 0.07% | 2.20% |
| 1999 | 25 | 3.17% | 1.21% | 1.95% | |
| 1997 | 27 | 0.80% | -0.61% | 1.41% |
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 3.50, 7.40 and 10.09. The current ratio is 9.63 based on a stock price of $3.37 and EPS estimate for 2025 of $0.35. According to the 10 year ratios, this ratio is high, but the P/E Ratios on this stock are very low. They are low because of a number of years of negative earnings. Generally, a P/E Ratio of less than 10.00 is showing the stock as relatively cheap.
I get a Graham Price of $4.39. The 10-year low, median, and high median Price/Graham Price Ratios are 0.30, 0.48 and 0.67. The current ratio is 0.77 based on a stock price of $3.37. According to the 10 year P/GP Ratios, the stock price is relatively expensive, but generally a P/GP of less than 1.00 is considered cheap.
I get a 10-year median Price/Book Value per Share Ratio of 0.82. The current ratio is 1.38 based on a stock price of $3.37, Book Value of $65.8M and Book Value per Share of $2.45. This P/B Ratio is 67% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. However, a P/B Ratio of less than 1.50 is considered at lease reasonable.
I get a 10-year median Price/Cash Flow per Share Ratio of 4.73. The current P/CF Ratio is 11.11 based on Cash Flow of 8.2M, Cash Flow per Share of $0.30 and a stock price of $3.37. This ratio is 135% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 0.56%. The current dividend yield is 2.97% based on dividends of $0.10 and a stock price of $3.37. The current dividend yield is 430% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I cannot do a 10 year median dividend yield test as the 10 year dividend yield is zero. However, if you look at the period when this company more consistently paid dividends from 2004 to 2015, I get a median dividend yield of 2.13%. The current dividend yield is 39% above this dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 0.64. The current P/S Ratio is 0.99 based on Revenue estimate for 2025 of $91.2M, Revenue per Share of $3.39 and a stock price of $3.37. The current P/S Ratio is 62% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
If you look at the stock chart, the stock price is off the recent high, but the stock price is hitting a line of resistance at just below $3.50. If it can break through this line of resistance, then it might be a buy.
Results of stock price testing is that the stock price is maybe reasonable? The dividend yield test says it is cheap. The P/S Ratio test says it is expensive. Most of the testing is saying that the stock price is relatively expensive but there are problems with a number of the tests.
When I look at analysts’ recommendations, I find Strong Buy (1) only. The consensus would be a Strong Buy. The 12 month stock price given is $6.00, with a high of $6.00 and low of $6.00. There seems to be only one analyst following this stock. The consensus stock price of $6.00 implies a total return of 81.01% with 78.04% from capital gains and 2.97% from dividends based on a current price of $3.37.
Last year when I look at analysts’ recommendations, I found Strong Buy (1), Buy (2) and Hold (1). The consensus would be a Buy. Target price was $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 based on a stock price of $2.10. What happened is the stock price moved to $3.37 for a gain of 64.29% with 60.48% from capital gains and 3.81% from dividends based on a stock price of $2.10.
Analysts on Stock Chase talk about the company bring new software product to market and the stock popped because of this. Analysts are being cautious about this until more is known. Joseph Solitro on Motley Fool reviewed this stock in 2015. The company put out a press release on Globe and Mail about their first quarter of 2025. The company put out a press release on Newswire about their fourth quarter of 2024.
Simply Wall Street via Yahoo Finance put out a article about Penny Stocks to watch and included McCoy in this article. Simply Wall Street via Yahoo Finance put out an article about dividends from this company in March 2025. They think that the company can easily cover their dividend payments. Simply Wall Street has two warnings out on this stock of does not have a meaningful market cap (CA$85M); and unstable dividend track record. They are right about unstable dividend track record as dividend have just restarted in 2023.
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 energy industry. In addition, the company also focuses on supporting capital equipment sales through aftermarket products and services such as technical support, consumables, and replacement parts. Geographically, it derives key revenue from the United States and Latin America. 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 Wednesday, May 14, 2025 around 5 pm. Tomorrow on my other blog I will write about Metro .... learn more on Tuesday, May 13, 2025 around 5 pm.
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