Current Analysis: Evertz Technologies (EVTZF)

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Evertz Technologies Ltd (EVTZF) is a Canadian provider of telecommunications equipment and technology solutions to the television broadcast and new-media industries.

Evertz equipment is used in the production, post-production and transmission of television content. Its solutions are sold to content creators, broadcasters, and service providers looking to support multi-channel digital and high definition television, and next generation Internet Protocol environments.

More than half of the firm's revenue is generated in the United States.

Evertz Technologies Limited was founded in 1966 and is headquartered in Burlington, Canada.

Three key data points gauge Evertz Technologies Limited or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

EVTZF Price

Over the past year, EVTZF’s share price increased about 9% from $8.26 to $9.00 as of Monday’s market close.

If Evertz’s stock trades in the range of $8.00 to $11.00 this next year, its recent $8,00 share price might rise to $10.00 by next year. Of course, Evertz’s price could drop about the same $1.00 estimated amount, or more.

My upside estimate of $1.00, however, is about in line with the past year price increase.

EVTZF Dividend

Evertz Technologies Limited has paid variable quarterly dividends since October 11, 2007.  EVTZF’s most recent Q dividend, paid September 29 to shareholders of record September 21st, was $0.14

That Q dividend measures up to $0.56 annually for a forward looking yield of 6.27%.

EVTZF Returns

Add the $0.56 anticipated annual dividend to EVTZF’s estimated $1.00 possible price upside, reveals a $1.56 estimated gross gain per share for the coming year.

At Monday’s $9.00 closing price, a little over $1000 would buy 111 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.09 per share.

Subtracting that likely $0.09 brokerage cost from my $1.56 estimated gross gain per share makes a net gain of $1.47 X 111 shares = $163.26 or about a 16.25% net gain.

This could be the time to pounce on Evertz Technologies Limited shares. And beware, EVTZF, is a small cap Candian Communication Products firm. Furthermore, the estimated $62.70 annual dividend from $1000 invested comes in at almost 7 times greater than the recent $9.00 single share price.  The question is really, what happens next to the EVTZF dividend payout and price?

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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