Skip to main content
The Globe and Mail
Get full access to globeandmail.com
Support quality journalism
Just $1.99 per week for the first 24weeks
Just $1.99 per week for the first 24weeks
The Globe and Mail
Support quality journalism
Get full access to globeandmail.com
Globe and Mail website displayed on various devices
Just$1.99
per week
for the first 24weeks

var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){console.log("scroll");var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))}pencilInit(".js-sub-pencil",!1);

Handout photo of the SodaStream Source, which infuses tap water with CO2 and syrup to produce soft drinks at home without bottle waste.

Handout/SodaStream

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.

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).

Story continues below advertisement

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.

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

Story continues below advertisement

Globe app users click here.

Read other research reports here.

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies