Is it a good company at a reasonable price? This is a small cap stock that has had some ups and downs lately. They are well thought of my analysts. However, there is an extra risk attached to the stock that is small and has been a bit inconsistent on dividends. The stock price is testing on cheap using the dividend yield.
I do not own this stock of Lassonde Industries Inc (TSX-LAS.A, OTC-LSDAF). Although this stock is not on the Investment Reporter list, MPL communications does write about this stock. It has been covered several times in their Advice Hotline emails in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.
When I was updating my spreadsheet, I noticed that the company has had fairly good growth. Revenue grew by 10% and 12% in 2024 and 2025. Although Revenue is not expected to growth this year. It is down by 1.21% over the last 12 months to the end of the first quarter of 2026 compared to the 12 months to the end of the first quarter of 2025.
One thing I noticed is that the dividend went up and down a lot lately. See the Chart Below. I am showing the Dividend Rate with the Increase by year. The last column is showing the Average Increase for 5 years Running.
| Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Dividend | $2.60 | $2.55 | $3.29 | $2.98 | $2.20 | $4.00 | $4.40 |
| Increase | -14.64% | -1.93% | 29.27% | -9.42% | -26.17% | 81.82% | 10.00% |
| Ave 5 Yr R. | 11.49% | 10.60% | 12.65% | 6.64% | -4.58% | 14.71% | 17.10% |
In the chart below, I am showing 5 and 10 year total growth and per year growth in columns 3 and 4. Column 5 shows growth expected over 12 months to the first quarter in 2026 and expected growth over this year.
| Yr | Item | Tot. Growth | Per Year | Gwth | Coverage |
|---|---|---|---|---|---|
| 5 | Revenue Growth | 48.11% | 8.17% | -1.21% | <-12 mths |
| 5 | EPS Growth - AESP | 61.73% | 10.09% | 6.05% | <-12 mths |
| 5 | Net Income Growth | 53.04% | 8.88% | 8.18% | <-12 mths |
| 5 | Cash Flow Growth | -23.79% | -5.29% | 74.56% | <-12 mths |
| 5 | Dividend Growth | 72.89% | 11.57% | 13.64% | <-12 mths |
| 5 | Stock Price Growth | 26.86% | 4.87% | -2.16% | <-12 mths |
| 10 | Revenue Growth | 102.45% | 7.31% | 1.40% | <-this year |
| 10 | EPS Growth - AESP | 180.00% | 10.84% | 4.91% | <-this year |
| 10 | Net Income Growth | 162.73% | 10.14% | 10.15% | <-this year |
| 10 | Cash Flow Growth | 50.81% | 4.19% | 95.40% | <-this year |
| 10 | Dividend Growth | 169.94% | 10.44% | 13.64% | <-this year |
| 10 | Stock Price Growth | 35.49% | 3.08% | 25.85% | <-this year |
The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 2.34%. The 5 year median dividend yield is moderate at 2.14%. The 10 and historical median dividend yields are low (below 2%) at 1.81% and 1.81%. The dividends have increased moderately (8% to 14%) over the past year at 11.6% per year. The last dividend increase was in 2026 and it was for 13.6%.
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is good at 20% with 5 year coverage at 24%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 19% with 5 year coverage at 23%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 6% with 5 year coverage at 10%. The DPR for 2025 for Free Cash Flow (FCF) is high at 50% with 5 year coverage at 30%. FCF varies from a negative 11M to a positive $60M. I am using the $60M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 20.05% | 23.92% |
| AEPS | 19.28% | 23.49% |
| CFPS | 8.69% | 10.03% |
| FCF | 50.03% | 29.64% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.29 and currently at 0.29. The Liquidity Ratio for 2025 is good at 1.75 and 1.80 currently. The Debt Ratio for 2025 is good at 2.22 and 2.29 currently. The Leverage and Debt/Equity Ratios for 2025 are good at 1.82 and 0.82 and currently at 1.78 and 0.78.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.29 | 0.29 |
| Intang/GW | 0.51 | 0.52 |
| Liquidity | 1.75 | 1.80 |
| Liq. + CF | 2.09 | 2.56 |
| Debt Ratio | 2.22 | 2.29 |
| Leverage | 1.82 | 1.78 |
| D/E Ratio | 0.82 | 0.78 |
The Total Return per year is shown below for years of 5 to 35 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 11.57% | 6.63% | 4.87% | 1.76% |
| 2015 | 10 | 10.44% | 4.64% | 3.08% | 1.55% |
| 2010 | 15 | 9.42% | 11.35% | 9.25% | 2.11% |
| 2005 | 20 | 11.49% | 10.91% | 8.95% | 1.95% |
| 2000 | 25 | 11.65% | 14.34% | 11.80% | 2.54% |
| 1995 | 30 | 9.89% | 11.46% | 9.57% | 1.88% |
| 1990 | 35 | 10.24% | 13.90% | 11.33% | 2.57% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.08, 9.75, 11.50. The corresponding 10 year ratios are 12.71, 15.85 and 18.78. The corresponding historical ratios are 11.23, 13.13 and 20.15. The current ratio is 8.89 based on a stock price of $213.87 and EPS $24.05. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 7.58, 9.24 and 11.19. The corresponding 10 year ratios are 11.51, 14.32 and 17.13. The corresponding historical ratios are 10.76, 13.18 and 15.14. The current ratio is 8.93 based on a stock price of $213.87 and AEPS $23.94. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $305.42. The 10-year low, median, and high median Price/Graham Price Ratios are 0.71, 0.88 and 1.05. The current ratio is 0.70 based on a stock price of $213.87. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 1.38. The current ratio is 1.23 based on a stock price of $213.87, Book Value of $1,181M and Book Value per Share of $173.18. The current ratio is 11% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 8.89. The current ratio is 4.24 based on Cash Flow per Share estimate for 2026 of $50.47, Cash Flow of $344M and a stock price of $213.87. The current ratio is 52% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. However, analysts are expecting the Cash Flow to be higher than it has ever been and 95% higher than for 2025. So, I wonder about this value.
I get an historical median dividend yield of 1.81%. The current dividend yield is 2.34% based on dividends of $5.00 and a stock price of $213.87. The current dividend yield is 29% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median dividend yield of 1.81%. The current dividend yield is 2.34% based on dividends of $5.00 and a stock price of $213.87. The current dividend yield is 29% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10-year median Price/Sales (Revenue) Ratio is 0.56. The current ratio is 0.49 based on Revenue estimate for 2026 of $2,975M, Revenue per Share of $436.11 and a stock price of $213.87. The current ratio is 12% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably reasonable and could be cheap. The dividend yield testing is saying that the stock price is cheap, but the P/S Ratio test says only reasonable and below the median. A number of other good tests are saying that the stock price is relatively cheap.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2) and Hold (1). The consensus is a Buy. The 12 month stock price consensus is $276.25 with a high of $290.00 and low of $260.00. The 12 month consensus stock price implies a total return of 31.25% with 29.18% from capital gains and 2.34% from dividends based on a current stock price of $213.87.
There are a couple of entries on Stock Chase for 2025. Analysts think it is a good business. Amy Legate-Wolfe on Motley Fool thinks is this a current smart buy while investor feel uneasy about the economy. She says it is defensive food name with improving profitability. Brian Paradza on Motley Fool used tariff war to its advantage. The company put out a Press Release about its fourth quarter of 2025. The company put out a Press Release about its first quarter of 2026 results.
Simply Wall Street via Yahoo Finance reviews this stock and its dividend. They do not like the fact that it has decreased dividends in the past, but feel the low payout ratio suggests a conservative approach to dividends and they like that. They have one warning on this stock of unstable dividend track record and this is true.
Lassonde Industries Inc, along with its subsidiaries, operates in the food and beverages industry in North America. The company develops, manufactures, and markets a range of national brand and private label products. Geographically, it earns the maximum revenue from the United States, and the rest from Canada and other countries. Its web site is here Lassonde Industries Inc.
The last stock I wrote about was about was Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more. The next stock I will write about will be Waste Connections Inc (TSX-WCN, NYSE-WCN) ... learn more on Wednesday, July 1, 2026 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks July 2026.... learn more on Tuesday, June 30, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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