Is it a good company at a reasonable price? I think caution is called for as the company has had problems and seem to be recovering. Analysts do expect it to recover. Analysts also talk about the company having a new CEO. A negative is that earnings cannot cover dividends and will not do so over the next few years. A positive is that the stock price is relatively cheap.
I do not own this stock of Sylogist Ltd (TSX-SYZ, OTC-SYZLF). I learned about this stock from the newsletter I subscribe to.
When I was updating my spreadsheet, I noticed they currently do not have any financial reports on their site. What financial information is there will not download. There are numerous sites where I can get the information I want. If they want you to invest in the company, they should make it easy to get financial information. Even their Press Releases on their financial reports have very minimal information.
If you had invested in this company in December 2014, for $1,005.68 you would have bought 104 shares at $9.67 per share. In December 2024, after 10 years you would have received $387.92 in dividends. The stock would be worth $922.48. Your total return would have been $1,310.40. This would be a total return of 3.38% per year with 2.07% from capital loss and 4.24% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $9.67 | $1,005.68 | 104 | 10 | $387.92 | $922.48 | $1,310.40 |
The current dividend yield is moderate with dividend growth currently flat after a dividend cut. The current dividend yield is moderate (2% to 4% ranges) at 4.35%. The 5, 10 and historical dividend yields are moderate at 4.65%, 3.33% and 3.29%. The dividends were cut by 20% in 2023 and they have been flat since then. Analysts do not expect any changes within the next 3 years.
The Dividend Payout Ratios (DPR) are far too high. The DPR for 2024 for Earnings per Share (EPS) is non-calculable due to an earnings loss with 5 year coverage at unacceptably high at 559%%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is non-calculable due to an earnings loss with 5 year coverage far too high at 253%. The DPR for 2024 for Cash Flow per Share (CFPS) is far too high at 412% with 5 year coverage at 94%. The DPR for 2024 for Free Cash Flow (FCF) is far too high at 73% with 5 year coverage at 113%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 0.00% | 558.75% |
| AEPS | 0.00% | 252.99% |
| CFPS | 411.61% | 94.42% |
| FCF | 72.64% | 113.08% |
Debt Ratios for Liquidity, an important ratio needs improving, with the rest of the ratios fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.09 and currently at 0.09. The Liquidity Ratio for 2024 is too low at 0.79 and 0.80 currently. If you added in Cash Flow after dividends, the ratios are too low at 0.83 and currently at 0.67. Even if you add back in the current portion of the long term debt, the ratios are too low at 0.79 and 0.80. The Debt Ratio for 2024 is good at 1.62 and 1.64 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.61 and 1.61 and currently at 2.55 and 1.55.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.09 | 0.09 |
| Intang/GW | 0.34 | 0.33 |
| Liquidity | 0.79 | 0.80 |
| Liq. + CF | 0.83 | 0.67 |
| Liq. + CF+D | 0.79 | 0.80 |
| Debt Ratio | 1.62 | 1.64 |
| Leverage | 2.61 | 2.55 |
| D/E Ratio | 1.61 | 1.55 |
The Total Return per year is shown below for years of 5 to 26 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 | 0.77% | 2.66% | -2.07% | 4.73% |
| 2014 | 10 | 6.91% | 3.38% | -0.86% | 4.24% |
| 2009 | 15 | 13.99% | 24.28% | 14.59% | 9.69% |
| 2004 | 20 | 19.23% | 13.46% | 5.77% | |
| 1999 | 25 | 6.66% | 4.24% | 2.42% | |
| 1998 | 26 | 1.95% | 0.14% | 1.81% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 54.17, 77.54 and 109.83. The corresponding 10 year ratios are 34.90, 53.85 and 69.57. The corresponding historical ratios are 14.63, 21.05 and 26.05. The current P/E Ratio is 276.28 based on a stock price of $9.20 and EPS estimate for 2025 of $0.03. This stock price testing suggests that the stock price is relatively expensive.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 18.72, 32.09, 45.05. The corresponding 10 year ratios are 23.00, 30.17, 37.33. The corresponding historical ratios are 18.16, 23.88 and 33.41. The current P/AEPS Ratio is 920.00 based on a stock price of $9.20 and AEPS estimate for 2025 of $0.01.
Note that the EPS estimate for 2025 and 2026 are $0.22 and $0.37 with P/E Ratios of 41.82 and 24.86. These are much more reasonable P/E Ratios. For AEPS, the AEPS estimate for 2025 and 2026 are also $0.22 and $0.37 with P/AEPS Ratios of 41.82 and 24.86. These are much more reasonable ratios. It is only the earnings for 2026 that the ratios show a relatively reasonable stock price of $9.20.
I get a Graham Price of $0.59. The 10-year low, median, and high median Price/Graham Price Ratios are 2.15, 2.68 and 3.59. The current P/GP Ratio is 8.52 based on a stock price of $9.20. This stock price testing suggests that the stock price is relatively expensive.
However, the Graham Price for 2025 and 2026 are $2.77 and $3.60. These produced P/GP Ratios of 3.32 and 2.56 with a stock price of $9.20. These ratios are pointing to stock price testing suggesting that the stock price is relatively reasonable.
I get a 10-year median Price/Book Value per Share Ratio of 5.15. The current P/B Ratio is 5.92 based on a Book Value of $36.4M, Book Value per Share of $1.55 and a stock price of $9.20. The current ratio is 15% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. Note that the Book Value hit a high in 2019 and has been declining ever since.
I get a 10-year median Price/Cash Flow per Share Ratio of 17.48. The current ratio is 12.21 based on Cash Flow for the last 12 month of $17.626M, Cash Flow per Share of $0.75 and a stock price of $9.20. The current ratio is 30% 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 3.29%. The current dividend yield is 4.35% based on a stock price of $9.20 and dividends of $0.40. The current yield is 32% 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 3.33%. The current dividend yield is 4.35% based on a stock price of $9.20 and dividends of $0.40. The current yield is 31% 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 6.45. The current P/S Ratio is 3.16 based on a stock price of $9.20, Revenue estimate for 2025 of $68M, and Revenue per Share of $2.91. The current ratio is 51% 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 relatively cheap. The dividend yield tests say this and it is confirmed by the P/S Ratio test. There are some problems with other testing mainly due to the fact the company has had recent earning problems. Analysts expect earnings to pick up over the next two years. The P/B Ratio tests is good and says the stock price is reasonable and above the median. The P/CF Ratio test is also good and says that the stock price is cheap.
When I look at analysts’ recommendations, I find Strong Buy (5), and Buy (2). The consensus would be a Strong Buy. The 12 month stock price consensus would be $12.96 with a high of $14.00 and a low of $12.00. The consensus stock price of $12.96 implies a total return of 45.22% with 40.87% from capital gains and 4.35% from dividends based on a current stock price of $9.20.
There are two analysts writing on Stock Chase in 2025. They mention that there is a new CEO and they seem positive about this company. Amy Legate-Wolfe on Motley Fool thinks that this company is recovering and will have future great growth. Christopher Liew on Motley Fool thinks that this company might be among the next generation of winners. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their first quarter of 2025.
Simply Wall Street via Yahoo Finance reviews this company. They give out no risk warnings on this stock.
Sylogist Ltd is a software company that provides software-as-a-service (SaaS) solutions that provides ERP, CRM, fundraising, education administration, and payments solutions to education verticals including fund accounting, grant management, and payroll to public service organizations. Geographically, the company offers its services to the United States of America, Canada, the United Kingdom, and other regions. Its web site is here Sylogist Ltd.
The last stock I wrote about was about was Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more. The next stock I will write about will be Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more on Friday, June 13, 2025 around 5 pm. Tomorrow on my other blog I will write about Mike Higgs .... learn more on Thursday, June 12, 2025 around 5 pm.
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