Investment Talk: Evertz Technologies Ltd

Sound bite for Twitter is: Dividend Growth Tech. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) are too high and need to improve. The current dividend yield is good with dividend growth low. See my spreadsheet on Evertz Technologies Ltd.

Is it a good company at a reasonable price? I am holding on to my shares at this time. I still think that this could be a good company for me. It is, of course, a risky buy. I have this stock in my main trading account. I also have it in my TFSA, which is my fooling around money. This stock is testing as relatively cheap and it probably is.

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. This was in 2011.

When I was updating my spreadsheet, I noticed I bought this as a small cap tech that I hoped would become a backbone stock. It has not. I have had this stock since 2011 and then several more purchases. I have made 4.10% per year with a capital loss of 2.98% and dividends at 7.08%. More than half the company is owned by the CEO and Chairman. Within the last year, the CFO bought more shares, some around $12.00 and some around $10.75.

Note that the annual report I am reviewing is for the fourth quarter of 2026 dated April 30, 2025. April 30 each year is the annual reporting period for this stock.

If you look at the chart on this company, there was a huge spike in the stock price in 2007 and then the stock price went up and down, but results in a rather flat stock price. There was a spike down in the stock price in 2020 and then the stock price when up and down, but at a lower level than before 2020.

If you had invested in this company in December 2014, for $1,003.20 you would have bought 57 shares at $17.60 per share. In December 2024, after 10 years you would have received $578.55 in dividends. The stock would be worth $718.20. Your total return would have been $1,296.75. This would be a total return of 3.37% per year with 3.29% from capital loss and 6.66% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$17.60	$1,003.20	57	10	$578.55	$718.20	$1,296.75

The current dividend yield is good with dividend growth low. The dividend yield is good (5% to 6% ranges) at 6.66%. The 5 year median dividend yield is good at 5.80%. The 10 year and historical dividend yields are moderate (2% to 4% ranges) at 4.75% and 4.10%. The dividend growth is low (below 8% per year) at just 1.9% per year over the last 5 years. The last dividend increase was in 2025 and it was for 2.6%.

The Dividend Payout Ratios (DPR) are too high and need to improve. The DPR for 2024 for Earnings per Share (EPS) is far too high at 103% with 5 year coverage at 113%. The DPR for 2024 for Cash Flow per Share (CFPS) is far too high at 67% with 5 year coverage at 73%. The DPR for 2024 for Free Cash Flow (FCF) is far too high at 88% with 5 year coverage at 94%. There is no agreement on what the FCF and for 2025 ranges is from $66.6M to 91.7M. I am using the lower range.

Item	Cur	5 Years
EPS	102.60%	113.47%
CFPS	67.31%	73.78%
FCF	87.97%	94.20%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.08 and currently at 0.07. The Liquidity Ratio for 2024 is good at 2.14 and 2.14 currently. The Debt Ratio for 2024 is good at 2.37 and 2.37 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.73 and 0.73 and currently at 1.73 and 0.73.

Type	Year End	Ratio Curr
Lg Term R	0.08	0.07
Intang/GW	0.02	0.02
Liquidity	2.14	2.14
Liq. + CF	2.35	2.27
Debt Ratio	2.37	2.37
Leverage	1.73	1.73
D/E Ratio	0.73	0.73

The Total Return per year is shown below for years of 5 to 18 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	1.87%	-0.91%	-6.74%	5.83%
2014	10	1.51%	3.37%	-3.29%	6.66%
2009	15	6.21%	6.58%	-0.46%	7.04%
2006	18	8.42%	5.43%	-0.42%	5.85%

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 13.82, 16.26 and 19.13. The corresponding historical ratios are 14.04, 16.94 and 19.68. The current ratio is 16.47 based on a stock price of $12.02 and EPS estimate for 2026 of $0.73. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $7.63. The 10-year low, median, and high median Price/Graham Price Ratios are 1.39, 1.64 and 1.95. The current ratio is 1.58 based on a stock price of $12.02. The current ratio is between the low and median ratios of the 10 year median ratios. 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 3.77. The current ratio is 3.39 based on a stock price of $12.02, Book Value of $268.6M, and Book Value per Share of $3.55. The current ratio is 10% 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 13.17. The current ratio is 10.73 based on Cash Flow per Share estimate for 2026 of $1.12, Cash Flow of $84.8M and a stock price of $12.02. The current ratio is 19% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 4.10%. The current dividend yield is 6.66% based on a dividend of $0.80 and a stock price of $12.02. The current dividend yield is 62% 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 4.75%. The current dividend yield is 6.66% based on a dividend of $0.80 and a stock price of $12.02. The current dividend yield is 40% 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 2.69. The current P/S Ratio is 1.73 based on Revenue estimate for 2026 of $526.9M, Revenue per Share of $6.96 and a stock price of $12.02. The current ratio is 36% below the 10 yar 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 say this and it is confirmed by the P/S Ratio test. However, most of the rest of the testing is saying that the stock price is reasonable and below the median.

When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $13.92 with a high of $12.25 and low of $13.50. The consensus stock price of $13.92 implies a total return of 22.46% with 15.81% from capital gains and 6.66% from dividends based on a current stock price of $12.02.

Last year, when I look at analysts’ recommendations, I found Strong Buy (1), Buy (2). The consensus would be a Strong Buy. The 12 months stock price consensus was $17.17 with a high of $17.50 and low of $17.00. The consensus stock price of $17.17 implied a total return of 44.29% with 38.02% from capital gains and 6.27% from dividends based on a stock price of $12.44. What happened was that the stock price fell from $12.44 to $12.02 a loss of 3.38%. Therefore the total return would have been 2.89% with a capital loss of 3.38% and dividends of 6.27%.

There is one entry on Stock Chase for this stock and it is a Buy. Christopher Liew on Motley Fool reviews this stock and says it is a gem. Adam Othman on Motley Fool reviewed this stock last year and said that the high Dividend Payout Ratio makes it seem like a risky investment. The company put out a press release via Globe and Mail on their fourth quarter for 2025 dated April 30, 2025.

Simply Wall Street via Yahoo Finance reviews this stock and says it is a promising small cap. It has one warning of dividend of 6.68% is not well covered by earnings.

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 15, 2025 around 5 pm. Tomorrow on my other blog I will write about Compounding Quality…. learn more on Thursday, August 14, 2025 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.

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