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While it has become a big name in recent years, Israel-based SodaStream International began introducing solutions to the beverage market in 1903 with a system that enabled consumers to carbonate water at home. Today, it is the world's largest manufacturer, distributor and marketer of home carbonation systems with machines being sold in over 60,000 retail stores, in 45 countries worldwide. It has a market cap of $430-million (U.S.).
SodaStream has grown earnings per share at a 47-per-cent pace over the long term (using an average of the 3, 4, and 5 year EPS growth rates). It has grown sales at a 43-per-cent pace over long term (using an average of the 3, 4, and 5 year sales growth rates).
The company trades for just 15.6 times trailing 12-month EPS. That and its growth rate make for a strong 0.33 PE-to-growth ratio, part of why the Peter Lynch-based model has strong interest.
It gets some interest from the Kenneth Fisher-based model, thanks to its 0.75 price/sales ratio, 11-per-cent debt/equity ratio, and 9-per-cent three year average net profit margins.
SodaStream has a strong 28.3-per-cent return on retained earnings (those not paid out as dividends) over the past decade, which the Warren Buffett-based model likes.
It has more net current assets than long term debt, which the Benjamin Graham-based model likes. And it has a 2.24 current ratio, which the Graham model also likes.
SodaStream trades for 1.2x book value.
John Reese is long SODA.
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