Lassonde Industries Inc. 2

I do not own this stock of Lassonde Industries Inc. (TSX-LAS.A, OTC-LSDAF). Although this stock is not 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 look at insider trading I find no insider selling and no insider buying. There are two classes of shares of Class A with 1 vote per share and Class B with 10 votes per share. The Pierre-Paul Lassonde, who is CEO and Chairman of the Board, owns 100% of Class B shares. The Class B Shares are worth around $393M.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.37, 11.58 and 13.11. These are slightly lower than the corresponding 10 year values of 10.34, 12.29 and 14.12. The current P/E Ratio is 18.11 based on the last 12 month EPS to the end of the first quarter which is an EPS of $6.60 and a current stock price of $119.52. This stock test suggests that the current stock price is relatively expensive.

I get a Graham Price of $86.67. The 10 year Price/Graham Price Ratios are 0.85, 0.97 and 1.11. The current P/GP Ratio is 1.38 based on a stock price of $119.52. This stock test suggests that the current stock price is relatively expensive.

The 10 year Price/Book Value per Share Ratio is 1.77. The current P/B Ratio is 2.36 based on a stock price of $119.52 and a BVPS of $50.58. This stock test suggests that the current stock price is relatively expensive.

The 5 year Dividend Yield is 1.76% and the current Dividend Yield is 1.34% based on a dividend of $1.60 per year and a stock price of $119.52. This stock test suggests that the current stock price is relatively expensive. The historical average and historical median dividend yields are even higher than the 5 year dividend yield at 1.93% and 1.83%, respectively.

There is an article in the G&M about Lassonde buying a US Juice company. There is a Newswire release talking about Lassonde acquiring more of Clement Pappas and Company Inc., another juice company. The Dividend Blogger recently talked about this company. An article on Seeking Alpha talks about this stock.

Sound bit for Twitter and StockTwits is: stock is current expensive. No matter how you look at the current stock price, this stock is currently expensive. I would rate it a Hold. If I held this stock I would not sell just because it is current overprice. However, I do not think I would buy any at this price. There are no analysts that follow this stock. See my spreadsheet at las.htm.

This is the second of two parts. The first part was posted on Wednesday, July 30, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.

Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of fruit and vegetable juices and drinks marketed under brands such as Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont. Lassonde is also the second largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry sauces. Its web site is here Lassonde Industries.

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. 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.

See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.