In our last Number Cruncher, we discussed how First National Financial Corp (FN:TSX), Evertz Technologies (ET:TSX) & Suncore Energy Inc (SU:TSX) are companies with compelling valuations distributing greater portions of their earnings as dividends.
First National Financial currently has an SP Score remains unchanged at 77 compared to 90 days prior, comprising a Performance Score of 75.89 and a Risk Score of 19.61. First National’s strongest factors compared to its peers are Quality and Yield. The company experienced an incredible 54.1% performance spread growth, and the 5-year average performance spread growth of 21.9%. Performance spread indicates company’s ability to generate value over its cost of capital thereby showcasing value creation for shareholders.
The EVA and NOPAT graph for the last 4 quarters exhibits the company’s turnaround of a declining NOPAT to all time highs. Notably, their net operating profit after taxes (NOPAT) has increased exponentially just in the last year going from 179.8 million in March 2023 to 266.96 million in March 2024. The EVA graph also showcases the sudden growth in intrinsic value for the shareholders. The future value growth graph reflects to be the lowest in the past couple of years which can be explained through the declining share price over the past years. The better performance spread & NOPAT growth, along with negative FGV indicates an undervaluation of the stock by the market.
The Evertz Technologies currently has an SP Score of 77 which has increased by 2 in the past 90 days. The SP Score is based on a performance score of 75.0 and a risk score of 21.10. Currently, Evertz Technologies top factors are quality, scoring 76, and value, scoring 66. The company had an annual growth rate of 17.9% adding to the steady growth in sales 5-year averages of 5.4%.
The intrinsic value chart depicts an exponential increase in the intrinsic value of the company for trailing 12 months. Our estimation shows that the company was overvalued between March 2020 and January 2022. Since January 2022 the company has been undervalued. It can be seen to be creating value, growing its intrinsic price, and widening the gap with its market price in all the subsequent quarters. Evertz Technologies continues to be a strong industrial company leading its peers at a compelling valuation.
Suncore Energy Inc current SP Score is 76, an incredible growth by 10 in the past 90 days. Their performance score is 76.18 and their risk score is 23.10. The company’s strongest factors compared to its peers are value and quality with respective scores of 79 and 63. Suncor Energy’s dividend yield growth has averaged 10.0% in the past 5 years with a current payout of 41.8%.
Suncor Energy’s annual Return on Capital (ROC) was 13.1% and the 5-year average ROC was 8.3%. The company’s annual P/E (8.2) was lower than its 5-year average (11.9) showcasing underpricing. Company’s economic performance index was 1.6x, indicating an impressive spread of ROC over the cost of capital. StockPointer estimates the value of the stock at the price of $84.85 (62.4% upside), and gives a buy recommendation.
If you have any questions about the article, feel free to contact Anthony:
amenard@inovestor.com
