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.
Cleveland-based Hyster-Yale Materials Handling makes and services a comprehensive line of lift trucks and aftermarket parts marketed globally primarily under the Hyster and Yale brands. The firm, which has employees in 13 countries around the globe and a market cap of $1.2-billion (U.S.), conducts its business under its subsidiary, NACCO Materials Handling Group.
Hyster-Yale has grown earnings at a 22-per-cent pace over the long-term (using an average of the 3- and 4-year EPS growth rates), which the Peter Lynch based model likes.
It has grown sales at a 15-per-cent pace over long-term, (using an average of the 3-, 4-, and 5-year sales growth rates) versus the industry average of 4 per cent.
The company's 12.2-per-cent earnings yield (using Joel Greenblatt-based model's EBIT/enterprise value metric) ranks 85th out of thousands of stocks in the market.
Hyster-Yale gets strong interest from the James O'Shaughnessy based growth model, in part because it has increased EPS in each year of the past half-decade. The O'Shaughnessy model also likes its 0.45 price/sales ratio and 83 relative strength.
The company has a 14.4 P/E ratio and 0.65 P/E-to-growth ratio, helping it get strong interest from the Lynch model. Debt/equity ratio (16 per cent) comes in well below Lynch model's 80-per-cent limit.
The 28-per-cent return on equity (12 month) more than doubles the industry average of 11 per cent. Low price/sales ratio and $5.93 in free cash per share help earn it some interest from Kenneth Fisher-based model.
John Reese is long HY.
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