Is it a good company at a reasonable price? I worry about the high DPRs. Dividends might be kept level for a while. This is a small company so there is risk in that too. It has generated cash and the total return include a large portion from dividends. It has not grown much. It is a negative that the Book Value has declined by 7% and 6% per year over the past 5 and 10 years. It is probably a good stock for passive income. The stock price does seem reasonable at the present time.
I own this stock of Evertz Technologies Ltd (TSX-ET, OTC-EVTZF). I came across an article in G&M about ET and it seemed a good dividend paying company. It has high dividends and is probably riskier than average. The company also has a large amount of insider ownership.
When I was updating my spreadsheet, I noticed I have a total return of 8.04% with 1.71% from capital gains and $6.33% from dividends. The company has given out special dividends when they had excess cash. I do not find this very good. Generally, companies reinvest excess money into their business. Note that this company has the financial year ending in April each year and I am looking at the April 30, 2027 year end and the first quarter of 2027 dated July 31, 2026.
If you had invested in this company in December 2015, for $1,015.50 you would have bought 58 shares at $17.50 per share. In December 2025, after 10 years you would have received $651.92 in dividends. The stock would be worth $802.72. Your total return would have been $1,454.64. This would be a total return of 4.76% per year with 2.32% from capital loss and 7.08% from dividends. There were two big special dividend payments in the past 10 years.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $17.50 | $1,015.00 | 58 | 10 | $651.92 | $802.72 | $1,454.64 |
The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4%) at 4.88%. The 5 year median dividend yield is good (5% to 6% ranges) at 5.86%. The 10 year and historical median dividend yields are moderate at 4.96% and 4.15%. The dividend growth is moderate (8% to 14% per year) at 8.5% per year over the past 5 years. The last dividend increase was in 2025 and it was for 2.5%. In 2021, 5 years ago, dividends were decreased by 25%, then in 2022 dividends were increased by 33%. Dividend increases since 2022 have been low (under 8% per year).
The Dividend Payout Ratios (DPR) far too high. The DPR for 2025 for Earnings per Share (EPS) is too high at 218% with 5 year coverage at 136%. The DPR for 2025 for Earnings per Share excluding the special dividend is still too high at 98%. The DPR for 2025 for Cash Flow per Share (CFPS) is too high at 146% with 5 year coverage at 88%. The DPR for 2025 for Cash Flow per Share (CFPS) without the special dividend is too high at 65%. The DPR for 2025 for Free Cash Flow (FCF) is good at 227% with 5 year coverage at 116%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 218.07% | 135.66% |
| CFPS | 145.95% | 88.49% |
| FCF | 226.58% | 116.02% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.00 and currently at 0.00. The Liquidity Ratio for 2025 is good at 1.62 and 1.62 currently. If you added in Cash Flow after dividends, the ratios are low at 1.34 and currently good at 1.76. The Debt Ratio for 2025 is good at 1.90 and 1.90 currently. The Leverage and Debt/Equity Ratios for 2025 are good at 2.11 and 1.11 and currently at 2.11 and 1.11.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.00 | 0.00 |
| Intang/GW | 0.02 | 0.02 |
| Liquidity | 1.62 | 1.62 |
| Liq. + CF | 1.34 | 1.76 |
| Debt Ratio | 1.90 | 1.90 |
| Leverage | 2.11 | 2.11 |
| D/E Ratio | 1.11 | 1.11 |
The Total Return per Year is shown below for years of 5 to 19 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 | 8.45% | 9.57% | 0.92% | 8.65% |
| 2015 | 10 | 1.18% | 4.76% | -2.32% | 7.08% |
| 2010 | 15 | 5.56% | 4.97% | -1.51% | 6.48% |
| 2006 | 19 | 8.08% | 5.91% | 0.09% | 5.82% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.56, 15.29 and 17.87. The corresponding 10 year ratios are 13.16, 16.26 and 19.68. The corresponding historical ratios are 13.92, 16.68, 19.92. The current ratio is 19.60 based on a stock price of $16.79 and EPS estimate for 2026 of $0.86. The current ratio is between the median and high ratio of the 10 median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $7.12. The 10-year low, median, and high median Price/Graham Price Ratios are 1.49, 1.71 and 2.00. The current ratio is 2.36 based on a stock price of $16.79. This ratio is above the high ratio of 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Book Value per Share Ratio of 3.85. The current P/B Ratio is 6.39 based on a Book Value of $198.17, Book Value per Share of $2.62 and a stock price of $16.79. The current ratio is 66% above the 10 year median ratio. 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 13.65. The current ratio is 13.88 based on Cash Flow per Share estimate for 2026 of $1.21, Cash Flow of $91.5M and a stock price of $16.79. The current ratio is 2% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get an historical median dividend yield of 4.15%. The current ratio is 4.88% based on dividends of $0.82 and a stock price of $16.79. The current dividend yield is 18% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median dividend yield of 4.96%. The current ratio is 4.88% based on dividends of $0.82 and a stock price of $16.79. The current dividend yield is 2% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10-year median Price/Sales (Revenue) Ratio is 2.52. The current P/S Ratio is 2.36 based on Revenue estimate for 2026 of $538.4M, Revenue per Share of $7.12 and a stock price of $16.79. The current ratio is 7% below the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably still reasonable. The 10 year dividend yield test is saying that the stock price is reasonable, but above the median. The P/S Ratio test says that the stock price is reasonable and below the median. The rest of the testing says the stock price is from reasonable to expensive. My caution is that the DPRs are too high, but on the other had they do have lots of cash. The other caution is the P/B Ratio test where we are also dealing with real values rather than estimates and that test says that the stock price is expensive.
When I look at analysts’ recommendations, I find Strong Buy (2), Buy (1) and Hold (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $17.75 with a high of $18.00 and a low of $17.00. The 12 month stock price consensus of $17.75 implies a total return of 10.60% with 5.72% from capital gains and 4.88% from dividends based on a current stock price of $16.79.
The only entry for 2026 on Stock Chase says it is a top pick because they have $500M in sales and no debt. Amy Legate-Wolfe on Motley Fool thinks this stock is a long term buy, but she says that the payout coverage needs monitoring. Christopher Liew on Motley Fool also thinks that this company has a great future. The company put out a press release via Newsfile and Yahoo Finance about their 2026 year end. The company put out a press release via Newsfile about their first quarter of 2027.
Simply Wall Street via Yahoo Finance reviews this stock. They think that there is a near term risk that customer concentration and regional exposure could lead to uneven revenue in tougher conditions.
Evertz Technologies Ltd is a supplier of software, equipment and technology solutions to the television broadcast, telecommunications, professional audio-visual, government, military, enterprise, and new media sectors. The Company designs, manufactures, and distributes video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets. Its web site is here Evertz Technologies Ltd .
The last stock I wrote about was about Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more. The next stock I will write about will be Pulse Seismic Inc (TSX-PSD, OTC-PLSDF) ... learn more on Monday, August 10, 2026 around 5 pm.
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