Validea’s pick of the week provides a detailed report on a company that scores well in the stock-screening service’s model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Validea.ca. Try it. Until the end of March, Globe readers can get a limited-time 25-per-cent discount.
Oil and gas services firm Total Energy Services features a $430-million market cap, a solid balance sheet ($65-million in long-term debt vs. $111-million in net current assets) and good valuation (11.5 P/E using 3-year avg. earnings). All of which earn it approval from the Benjamin Graham-based guru strategy.
Total also has 20.2 per cent long-term EPS growth rate (using average of 3, 4, and 5 year EPS growth rates) and 6.2 trailing 12-month P/E, which makes for a stellar 0.31 P/E-to-growth ratio, part of why it passes the Peter Lynch-based guru model.
It earns strong interest from Joel Greenblatt-based model thanks to 22.6 per cent earnings yield and 24.8 per cent return on capital.
Some other good metrics:
- Has strong 3.55 current ratio, a sign of good liquidity
- Has reasonable 24 per cent debt/equity ratio
- Has 27.6 per cent free cash flow yield
- Has $3.84 in free cash flow per share
Click here to read the full report for a detailed breakdown.
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