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.
Netherlands-based Chicago Bridge & Iron Company N.V. does energy infrastructure projects. It also provides environmental protection and remediation services and designs and constructs infrastructure and civil works for government and commercial clients worldwide. It has a market cap of $9-billion (U.S.)
The company has grown earnings at a 26-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.
Long-term earnings growth has been driven by revenue growth (35 per cent, using an average of the 3-, 4-, and 5-year sales growth rates), not one time unsustainable factors, which the Martin Zweig-based model likes.
Its 19.5 price/earnings ratio and 26-per-cent growth rate make for a solid 0.76 PE-to-growth ratio, part of why the Lynch-based model has strong interest.
Chicago Bridge & Iron 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 0.79 price/sales ratio and 74 relative strength.
The firm increased earnings by 98 per cent last quarter, which the Momentum Investor model likes. It has a strong 24.5-per-cent return on equity, which the Momentum model also likes.
And the company has averaged a return on retained earnings of 22 per cent over the past decade, which the Warren Buffett based model likes.
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