Lassonde Industries

I do not own this stock of Lassonde Industries (TSX- LAS.A, OTC- LSDAF). I started to follow this stock in February 2010 because of a favorable report I read about this stock in the Advice Hotline emails from MPL Communications. Their site is here.

This company started to pay dividends in 1991 and began to raise them on a regular basis in 2001. Except for 2007, when dividends were decreased about 11%, the dividends have been raised each year. (The dividends in 2008 were higher than in 2006.) The 5 and 10 year growth in dividends is at 15% and 14% per year.

The Dividend Payout Ratios are good for this stock. The 5 year median DPR for earnings is 22% and the DPR for cash flow is 13%. The current dividend has a yield of 1.8%. The last dividend increase occurred in 2013 and it was for 25.8%.

The 5 and 10 years total returns on this stock are at 15.23% and 18.72% per year, respectively. The dividend portion of this return is 2.04% and 2.23% per year over the past 5 and 10 years. The capital gain portion of this return is at 13.18% and 16.49% per year over the past 5 and 10 years.

The outstanding shares have increased minimally over the past 5 and 10 years with increases of less than 1% per year. The company has issued stocks and it has also done some share buy backs. Growth has been quite good for revenue, earnings, cash flow and book value.

Revenue growth has been at 20% and 16% per year over the past 5 and 10 years. The Revenue per Share growth has been at 19% and 16% per year over the past 5 and 10 years. Earnings growth is at 12.5% and 13.5% per year over the past 5 and 10 years. Cash Flow has grown at 13% and 14% per year over the past 5 and 10 years.

The Return on Equity has been quite good with the ROE for the financial year ending in 2012 at 14.6% and the 5 year median ROE at 15.4%. The ROE for Comprehensive Income varies from the ROE on net income and the ROE for 2012 was lower at 12.2% and this has a 5 year median ROE at 14.5%.

The current Liquidity Ratio is very good at 2.38. The current Debt Ratio is also quite good at 1.67. This is typical of small companies with large insider ownership. The current Leverage and Debt/Equity Ratios are fine at 2.49 and 1.49.

This is a small company with a good dividend record. However, since it is small this makes this stock more risky than other dividend paying stocks that would be considered a consumer staple stock. On the other hand, this company has been around for a while and has shown it can make money for its shareholders. See my spreadsheet at las.htm.

This is the first of two parts. Second part will be posted on Wednesday June 19, 2013 and will be here. I will look at how good the current stock price is.

Lassonde Industries Inc. is a leading manufacturer of pure fruit juices and fruit drinks in Canada, and the largest manufacturer and distributor of apple juice in Eastern Canada. Through its subsidiaries, Lassonde is active in the processing, packaging and marketing of food products such as pure fruit juices, fruit and citrus drinks, the canning of corn on the cob for foreign markets as well as dipping sauces, fondue bouillon, meat marinades, barbecue sauces and baked beans. The Company also markets its know-how in Canada and abroad. Its web site is here Lassonde.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.