Wednesday, July 30, 2014

Lassonde Industries Inc.

On my other blog I am talking about my investments in Ballard and BlackBerry continue...

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.

Generally, this stock has a low dividend yield, but high dividend growth. The 5 year median dividend yield is 1.76%. The current dividend yield is 1.34%. The 5 and 10 year dividend growth is at 15.1% and 14% per year.

However, dividend increase really slowed down in 2014 coming in at just 2.6% compared to last year's 20%. Revenue, Earnings and Cash Flow increases slow in 2013. This could explain the slowdown in dividend increases. For example, Revenue per Share 5 year increase last year was 19.4% per year, but the 5 year increase to 2013 it is 13.11% per year, EPS 5 year increase last year was 12.5% per year and to 2013 it is 8.1% per year and CFPS 5 year increase last year was 13.3% per year and to 2013 it is 12.4% per year.

The 5 year Dividend Payout Ratio for EPS is at 23%. The one for 2013 was at 23% also. The 5 year median DPR for CFPS is at 13% and the one for 2013 is at 11%.

The shareholders of done well recently with the 5 and 10 year total return to date at 19.47% and 17.22% per year. The portion of this total return attributable to dividends is at 1.81% and 1.73% per year. The portion of this total return attributable to capital gains is at 17.67% and 15.49% per year.

The outstanding shares have increased by 1% over the past 5 years and are flat over the past 10 years. The growth in revenue, earnings and cash flow is very good over the past 5 and 10 years. For 2013 the revenue growth was very low at just 1.8%, EPS better at 2.2% and CFPS rather normal at 17.4%.

Revenue per Share is up by 14.4% and 15.1% per year over the past 5 and 10 years. EPS is up by 8.1% and 12.3% over the past 5 and 10 years. CFPS is up by 12.4% and 15.2% per year over the past 5 and 10 years.

The Return on Equity has been above 10% each year over the past 10 years. The ROE for 2013 was at 12.8% and the 5 year median is at 14.6%. The ROE on comprehensive income was at 17.7% for 2013 and the 5 year median is at 14.5%.

Basically the debt ratios are good. The Liquidity Ratio at 1.92 is very good and it has a 5 year median of 2.01. The Debt Ratio is 1.83 and the 5 year median ratio is 1.83. I would like to see the Leverage and Debt/Equity Ratios a bit lower but they are fine at 2.20 and 1.20. The 5 year median ratios are better at 1.89 and 0.89.

Sound bit for Twitter and StockTwits is: Dividend Growth Stock. It has a strong balance sheet and has proven it can make money. This has been a great stock for shareholders and some see it doing well going into the US. See my spreadsheet at las.htm.

This is the first of two parts. The second part will be posted on Thursday, July 31, 2014 and will be 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.

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