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.
Quebec-based Lassonde Industries makes a variety of fruit and vegetable juices and drinks, including the Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont brands. It also makes specialty food products under brands such as Antico and Canton, has 14 plants across the U.S. and Canada, a $620-million market cap.
Lassonde gins up strong interest from Validea’s James O’Shaughnessy-based growth model, thanks to persistent annual EPS growth (it increased EPS for six straight years), solid 12-month relative strength of 80, and bargain-priced 0.6 price/sales ratio.
It squeezes a long-term revenue growth rate of 22 per cent (using average of 3, 4, and 5 year sales growth rates), nearly four times food-processing industry average.
Validea’s Warren Buffett model likes the average 15.3 per cent return on equity over past decade, and also its $15.79 in free cash flow per share, which makes for a juicy 17.8 per cent free cash flow yield.
That said, it’s a small-cap with low volume, so investors should be aware of its low liquidity and the impact that could have on short-term volatility.
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