Opinions Bruce Murray
Evertz Technologies Ltd.ET.TOBUYJan 16, 2025
Bruce MurrayStock price when the opinion was issued
As of Jun 02, 2026. Market Open.
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We would be OK holding this for income, but it is still a relatively slow-growth name with 'chunky' revenues. We would not expect huge gains here but the dividend flow is nice.
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It is held very tightly by its two founders who own over half. It is in the telecommunications space involving television streaming over the Internet and has a nice niche in this market.They are big investors in new technology. Pays a 6% yield and every 3 or 4 years a special dividend of as much as 10% of its capitalization.
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Premium contentOur PAST TOP PICK with ET has triggered its stop at $11. To remain disciplined we recommend covering the position at this time. When combined with our previous guidance, this will result in a net investment loss of 9%.
Premium contentWe reiterate this Ontario based broadcasting and media platform manufacturer as a TOP PICK. Recently reported earnings grew over 60%, allowing the company to reduce debt, buy back shares and still grow cash reserves. It trades at 17x earnings and supports a 25% ROE. We recommend trailing up the stop (from $10) to $11, looking to achieve $15.50 -- upside potential over 18%. Yield 6.5%
(Analysts’ price target is $15.50)Premium contentWe reiterate this Canadian based provider of software and hardware for the video production industry as a TOP PICK. The company recently reported cash reserves are growing, while debt is retired, shares bought back, and the robust dividend is maintained. Their order backlog is growing, margins are expanding and software revenues are up over 25%. We continue to recommend a stop at $10.00, looking to achieve $15.50 -- upside potential over 25%. Yield 6.5%
(Analysts’ price target is $15.42)Premium contentWe reiterate this developer of HD and Ultra HD broadcast and film industry production software and hardware based in Burlington as a TOP PICK. It trades at 15x earnings and supports a 25% ROE. Recently reported revenues were up over 20% from a year ago with higher margins. We like that cash reserves are growing, while debt is retired and the high dividend yield is maintained. We continue to recommend a stop at $10, looking to achieve $15 -- upside potential of 25%. Yield 6.6%
(Analysts’ price target is $15.42)Last time, he recommended this as a Top Pick. Niche business, but volatile. No debt. Management owns 60% of shares. When cash builds up, they tend to pay $1 extra in dividends. Cash build is approaching that, so if it can't make an acquisition at a good price, you'll probably get that extra dividend in the next 12-19 months.
Bruce MurrayThe stock is down because of it moving its business model to SaaS. This basically means that instead of making a big sale up front, the income switches to monthly payments. It generates cash, has no debt and pays a dividend. There are two main owners, each one owning 37 to 38% of the company so there are no bad calls. It has traded at $12 to$17 over the years. Buy 3 Hold 0 Sell 0
(Analysts’ price target is $17.17)Bruce MurrayPremium contentET is a leader in software designed for video creation. It recently reported a 10% increase in net income over the year. Their order backlog of $295 million is equal to just under 10 months of shipments. It trades at 14x earnings and supports a 27% ROE. We recommend setting a stop-loss at $10, looking to achieve $17 -- upside potential of 26%. Yield 6.3%
(Analysts’ price target is $17.17)Premium contentPremium contentFollowing recently reported earnings growth per share of 50% on rising revenue and gross margins, we select ET as a TOP PICK. We like that cash reserves are growing, while debt is retired and shares bought back. The designer of audio and video infrastructure for media trades at 15x earnings and supports a 30% ROE. It has a growing dividend, backed by a payout ratio under 80% of cash flow. We recommend setting a stop-loss at $13.75, looking to achieve $18 — upside potential of 18%. Yield 5.2%
(Analysts’ price target is $18.00)EPS of 24c beat estimates of 22c. Revenue of $135M beat estimates by ~8%. EBITDA of $30M beat by 7%. Revenue rose 22%, with international up 38%. The quarter was a record. Net earnings rose 48%. Net cash is $40M. With nice growth and only at 14X earnings, a valuation bump is possible, moreso if rates fall. It was certainly a strong quarter. We might set an $18 target here.
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EPS of 20c missed estimates of 22.5c. Sales of $125.8M beat estimates of $120.5M. Sales and earnings rose nicely. Cash is now $27M. It was a decent quarter, but there has been no long-term growth here. Even with a bounce this year, EPS will be slightly lower than it was in 2016. The stock is cheap because of this, but mostly only trades for its dividend. Investors need to see some consistent growth. The quarter was a good start but does not yet make a trend.
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A 3% position for him because of the nice dividend, sometimes a special dividend. No debt, cash is accumulating, might be considering acquisitions. Will continue to be a leader in more complicated broadcasting. Sales are lumpy. Yield is 6.4%.