McCoy Corp Revisited

On February 28, I wrote about McCoy Corp here. When I ran my searches this weekend, McCoy was the only stock to pass my most successful screen. Looking at the financials of McCoy impressed me so much that I decided to compare it against all other Canadian stocks. I ran a screen in which I filtered for stocks which 1. had increased revenue every year for the past five years, 2. had increased earnings every year for the past five years, 3. have an interim revenue growth rate exceeding 20%, 4. have an interim earnings per share growth rate exceeding 20%, 5. have positive earnings, 6. have a P/E ratio less than 10 and 7. have a P/S ratio less than 2. Out of the 983 stocks in my database, only two stocks met all these criteria: Orvana Minerals (ORV) and McCoy Corp (MCB).

McCoy is currently paying a 3.7% dividend and has a RiskGrade of 288. Orvana doesn't pay a dividend and has a RiskGrade of 261.

McCoy's stock price has declined recently perhaps reflecting the financial results for the three months ended September 30 plus the increasing Canadian dollar and the prospect of reduced oil well drilling in Western Canada this year. In comparison to the quarter ending September 30, 2006, revenue decreased by 3%, EBITA decreased by 4%, net earnings decreased by 16%, diluted EPS decreased by 25% and cash flow from operations decreased by 6%. The key question is whether the outlook for McCoy warrants a 40% reduction in the stock price over the past year.

McCoy has an excellent financial presentation here which outlines the company's fianancial performance as well as the opportunities and threats going forward.

McCoy's web site is here. They are releasing their most recent financial results on March 11.