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.
British Columbia-based Glentel Inc. is the largest independent multi-carrier mobile phone retailer in Canada and Australia. Its Retail Canada Division operates more than 330 retail stores; its Retail U.S. Division operates over 620 stores; and its Retail Australia division operates more than 200 retail stores. The firm also offers business services in Canada. It is a small-cap stock ($380-million in market cap) so beware of volatility.
Glentel has grown earnings per share at 23 per cent rate over long term (using average of the three-, four- and five-year EPS growth rates) and sales at 31 per cent pace (using avg. of three-, four- and five-year sales growth rates).
And there’s one thing the Warren Buffett-based model considers exceptional: It has generated 23.2 per cent return on retained earnings by increasing EPS by $1.02 over past decade while retaining $4.39 in earnings. In another Buffett-model indicator, Glentel has averaged 27.9 per cent return on capital over past decade.
In addition, the Joel Greenblatt-based model likes its 7.8 per cent earnings yield, and the stock also offers 2.9 per cent dividend yield.
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