Go to the Globe and Mail homepage

Jump to main navigationJump to main content




Research Report

Consulting firm would get high marks from investing greats Add to ...

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.

Independent specialty consulting firm Navigant Consulting Inc., whose services include dispute, investigative, economic, operational, risk management technology, financial and regulatory advisory solutions has a market cap of $825-million (U.S.) and serves companies, legal counsel and governmental agencies facing the challenges of uncertainty, risk, distress and significant change. 

Navigant has grown earnings at a 20.4-per-cent pace over the long term (using an average of the 3-, 4-, and 5-year EPS growth rates), which the Peter Lynch based model likes. The Lynch model also likes Navigant`s 0.80 PE-to-growth ratio.

The company has reasonable 20-per-cent debt/equity ratio and gets strong interest from the James O'Shaughnessy-based growth model, thanks to its combination of good momentum (71 relative strength over past 12 months) and reasonable 1.0 price/sales ratio.

It gets some interest from the Joel Greenblatt-based model, which likes its earnings yield (EBIT/enterprise value) of 10.5 per cent. It has a strong 49.5-per-cent return on capital, using the EBIT/total capital employed metric the Greenblatt-based model uses.

Navigant has a 2.7 current ratio, a sign of good liquidity, according to the Benjamin Graham-based model, and it has free cash flow yield of 9.9 per cent.


John Reese is long NCI.


Click here for a complete breakdown of Validea's investing guru report.


Read other research reports here.

In the know

Most popular videos »


More from The Globe and Mail

Most popular