Skip to main content

The Globe and Mail

Stock pick: Take a message from this small-cap mobile retailer

This British Columbia-based Glentel Inc. is the largest independent multi-carrier mobile phone retailer in Canada and Australia.

MARIO ANZUONI/REUTERS

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).

Story continues below advertisement

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.

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

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨