3/29/2015

Overlooked Value Outlier Oversold


McCoy Global trades at a discount to its reproduction cost, tangible book value coupled with growing sales, dividend yield, book value and recently announced share buyback. Stocks is down -42.31% over the prior 52 weeks.
 
McCoy Global (MCCRF) $3.00 or (MCB.TO) $3.78CAD 
McCoy Corporation established in 1914 is Canada based provides products and services for the global energy industry. It operates internationally through direct sales and distributors

McCoy is  "an innovator of tubular handling, assembly and measurement equipment used for making up threaded connections in the oil and gas industry. Further, its engaged in the design, manufacture and distribution of capital equipment”. Source Morningstar


McCoy has two primary segments, energy products/ services and mobile solutions.
The Energy Products and Services segment includes the Drilling and Completions division, also Coatings / Hydraulics division. Mobile Solutions is the Trailers division. It manufactures heavy haul, forestry and oilfield trailers along with drilling and well servicing chassis.

Summary Investing points;
McCoy has an unique combination of value attributes making it a value outlier. The price trades  below its tangible book value, growing YOY sales of 8.40%, growing book value per share since 2009,  consistent strong ROIC of 12.62% TTM, multi year low valuation for EV/GP,  growing dividend yield TTM = 5.90%, strong balance sheet and free cash flow, solid Z score with a high F score. 52 change in share price was negative -42.31%.

McCoy Recently announced (03/25/15) an approved large share buyback. Click to read

"approval from the Toronto Stock Exchange to purchase up to 1,384,711 common shares, representing approximately 5% of the issued and outstanding common shares of McCoy.
McCoy's management and board of directors believe that the current market price of its common shares does not represent the underlying value of the Company, and has determined that the repurchase of its common shares is a desirable use of funds and in the best interests of the Company and its shareholders."
 

 
 
 
 
 
 
 
 
 
 
Market Cap: 82.95M , Enterprise:  59.24M
Trailing P/E (ttm): 5.76 , Price/Sales (ttm):  0.80
Price/Book (mrq):  0.93
Enterprise Value/Revenue (ttm):  0.62 , Enterprise Value/EBITDA (ttm): 3.73
Return on Assets (ttm): 7.22% , Return on Equity (ttm): 9.95%
Revenue (ttm):  96.26M , Revenue Per Share (ttm):  3.49
Qtrly Revenue Growth (yoy):  8.40%
52-Week Change:      -42.31%
52-Week High (Jul 7, 2014): 6.18 , 52-Week Low (Feb 3, 2015):    2.78
Shares Outstanding:27.69M , Float:  20.70M
Trailing Annual Dividend Yield:  5.90%     

 No position in MCCRF/MCB.TO

1 comment:

juanpitarch said...

Very interesting, PB, PS, Net Debt, EV/EBITDA, "loser".