Is it a good company at a reasonable price? I own this stock and I have done well with it. I think any return greater than 8% per year (capital gains and dividends) is a good return. I note insiders are buying, even though it has not done well over the past 5 years. Their last buys are at $57.42. I bought this stock for diversification purposes. I plan to continue to hold the shares that I have. I am buying little these days as I am living off my dividends. The stock price I think is reasonable and below the median.
I own this stock of Calian Group Ltd (TSX-CGY, OTC-CLNFF). In 2011 I found Calian to be 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 all the officers and directors I am following bought shares over the past year. The CEO has left and been replace with the CFO. The company is starting a search for a new CFO.
I have done well with this stock. I first bought it in 2016 and then made purchases in 2011 and 2012. My total return to the end of December 2025 is 12.11% with 8.45% from capital gains and 3.66% from dividends over this 14.6 year period.
Note however, that although I have made money and a good return was made over the past 10 years, the total return over the past 5 year is a loss of 1.79% with a capital loss of 3.62% and dividends 1.82%. Five years ago, the stock hit a peak of $66.16 in 2020. Since 2022 the stock price has gone down. The positives are since 2022 is the rise in Revenue, Revenue per Share and Adjusted EPS. The negatives are the decline in EPS and Cash Flow less Working Capital is down. Also, debt is up as is Intangibles and Goodwill. Debt has grown 997%. Intangibles and good will has grown by 331%. Although neither debt or Intangibles and Goodwill are not currently at a worrying level.
If you had invested in this company in December 2015, for $1,001.92 you would have bought 62 shares at $16.16 per share. In December 2025, after 10 years you would have received $694.40 in dividends. The stock would be worth $3,411.86. Your total return would have been $4.106.26. This would be a total return of 17.44% per year with 13.04% from capital gain and 4.41% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $16.16 | $1,001.92 | 62 | 10 | $694.40 | $3,411.86 | $4,106.26 |
The current dividend yield is low with dividend growth non-existent. The current dividend yield is low (below 2%) at 1.91%. The 5 year dividend yield is low at 1.85%. The 10 year and historical dividend yields are moderate (2% to 4% ranges) at 2.27% and 3.49%. The last dividend increase was in 2013.
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is high at 64% with 5 year coverage at 85%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 34% with 5 year coverage at 31%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 17% with 5 year coverage at 18%. The DPR for 2025 for Free Cash Flow (FCF) is good at 26% with 5 year coverage at 27%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 63.64% | 85.37% |
| AEPS | 34.15% | 30.68% |
| CFPS | 17.37% | 18.48% |
| FCF | 25.60% | 27.19% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.23 and currently at 0.20. The Liquidity Ratio for 2025 is low at 1.48 and 1.48 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.64 and currently at 1.64. The Debt Ratio for 2025 is good at 1.80 and 1.80 currently. The Leverage and Debt/Equity Ratios for 2025 are fine at 2.25 and 1.25 and currently at 2.25 and 1.25.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.23 | 0.20 |
| Intang/GW | 0.59 | 0.52 |
| Liquidity | 1.48 | 1.48 |
| Liq. + CF | 1.64 | 1.68 |
| Debt Ratio | 1.80 | 1.80 |
| Leverage | 2.25 | 2.25 |
| D/E Ratio | 1.25 | 1.25 |
The Total Return per year is shown below for years of 5 to 32 to the end of 2025. 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. |
|---|---|---|---|---|---|
| 2020 | 5 | 0.00% | -1.79% | -3.62% | 1.82% |
| 2015 | 10 | 0.00% | 17.44% | 13.04% | 4.41% |
| 2010 | 15 | 2.35% | 11.52% | 7.54% | 3.98% |
| 2005 | 20 | 6.46% | 13.55% | 8.46% | 5.09% |
| 2000 | 25 | 8.95% | 17.71% | 11.37% | 6.35% |
| 1995 | 30 | 11.06% | 7.98% | 3.08% | |
| 1993 | 32 | 9.15% | 6.71% | 2.44% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 44.89, 52.52 and 60.15. The corresponding 10 year ratios are 25.86, 28.17 and 30.47. The corresponding historical ratios are 11.66, 11.71 and 14.24. The current ratio is 24.37 based on a stock price of $58.57 and EPS estimate for 2026 of $2.40. This ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. However, these ratios have gone up a lot over the years, so you have to wonder how good this test is.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 13.80, 16.15 and 18.50. The corresponding 10 year ratios are 12.36, 14.08 and 15.83. The corresponding historical ratios are 10.69, 12.41 and 14.13. The current ratio is 13.56 based on a stock price of $58.57 and AEPS estimate for 2026 of $4.32. This ratio is between the low ratio and median ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This seems to be a good test.
I get a Graham Price of $52.45. The 10-year low, median, and high median Price/Graham Price Ratios are 1.07, 1.20 and 1.32. The current ratio is 1.12 based on a stock price of $58.57. This ratio is between the low ratio and median ratios of 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/Book Value per Share Ratio of 2.21. The current ratio is 2.07 based on a Book Value of $321.28M, Book Value per Share of $28.31 and a stock price of $58.57. The current ratio is 6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I also have Book Value per Share estimate for 2026 of $35.95. This implies a ratio is 1.63 based on a stock price of $58.57 and a Book Value of $408M. This ratio is 26% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 12.00. The current ratio is 14.63 based on Cash Flow for the last 12 months of $45.4M, Cash Flow per Share of $4.00 and a stock price of $58.57. The current ratio is 22% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is not a particularly good test as cash flow does fluctuate a lot and no one is given out a Cash Flow estimate.
I get an historical median dividend yield of 3.49%. The current ratio is 1.91% based on dividends of $1.12 and a stock price of $58.57. The current dividend yield is 45% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. Unforturately, this test does not work well when the dividends are flat.
I get a 10 year median dividend yield of 2.27%. The current ratio is 1.91% based on dividends of $1.12 and a stock price of $58.57. The current dividend yield is 16% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. Unforturately, this test does not work well when the dividends are flat.
The 10-year median Price/Sales (Revenue) Ratio is 0.83. The current P/S Ratio is 0.78 based on Revenue estimate for 2026 of $849.6M, Revenue per Share of $74.85 and a stock price of $58.57. The current ratio is 6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is a good test.
Results of stock price testing is that the stock price is probably reasonable. The P/S Ratio test says this. I am using this test as the dividend yield tests do not work when the dividends are flat. There are a number of good tests that say that the stock price is relatively reasonable and below the median.
When I look at analysts’ recommendations, I find Strong Buy (4), and Buy (2). The consensus would be a Strong Buy. The 12 month stock price consensus is $62.83 with a high of $66.00 and low of $58.00. The consensus stock price of $62.83 implies a total return of 9.19% with 7.27% from capital gains and 1.91% from dividends based on a current price of $58.57. (I think that this return implies a reasonable stock price not a cheap one, which a Strong Buy infers.)
There is not much on Stock Chase for this company. There is an analyst remarks for 2025 that said the company was solid and well-run. Robin Brown on Motley Fool thinks things are looking up for this company. Christopher Liew on Motley Fool thinks this company will benefit from surge in defense spending in 2026. The company put out a Press Release about their fourth quarter of 2025.
Simply Wall Street via Yahoo Finance put out a rather negative report on this stock. However, I think that the Adjusted EPS is a better measure that EPS on ROE.
Calian Group Ltd provides services to industry and government across health, learning, defense, security, aerospace, engineering, AgTech, satcom, and IT. It generates the majority of revenue from Canada and has a presence in the United States, Europe, and other. 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 Wednesday, January 14, 2026 around 5 pm. Tomorrow on my other blog I will write about Utility and Power Stocks for 2026 learn more on Tuesday, January 13, 2026 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