Lassonde Industries Inc.

Sound bite for Twitter and StockTwits is: Currently expensive. This would be a good stock to use to build a stock portfolio with low dividends (less tax) and moderate dividend growth. It is expensive currently, but it will not always be so. See my spreadsheet on Lassonde Industries Inc.

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.

The dividend yield is low and the dividend growth is moderate. The current dividend yield is 1.02%. This is based on dividends of $2.04 and a stock price of $199.68. The 5 year median dividend yield is 1.64% and the median historical dividend yield is 1.80%. Dividends have increased by 15.06% and 14.04% per year over the past 5 and 10 years.

With low dividends, it takes a while to growth them into good yields on the original stock price. If you had bought this stock 5, 10 or 15 years ago at a median price you would be earnings 2.9%, 5.2% and 13.4% dividend yield on your original stock price. If you had bought this stock 5 years ago and paid a median price, dividends would have covered 11.7%, 33.4% and 102% of the original cost of your stock.

The most recent dividend increase was in 2016 and it was for 24.4%. The dividend increases tend to fluctuate a lot. After a really high one, the company tends to give a low increase. The dividend increases in the past 3 years are 25.8%, 2.65 and 2.5%. If you bought the stock today at $199.68 and the dividends growth was at 14%, then in 5, 10 and 15 years you could be earning dividend yields on today's price of 2%, 3.8 and 7.3%.

The company has had good growth in revenues, earnings and cash flow. Revenue per Share is up by 20.5% and 51.9% per year over the past 5 and 10 years. EPS is up by 11.1% and 12.5% per year over the past 5 and 10 years. Cash Flow per Share is up by 23.4% and 18.25 per year over the past 5 and 10 years.

Debt Ratios are good to very good. The Liquidity Ratio for 2015 is 1.75. The Debt Ratio for 2015 is 1.90. The Leverage and Debt/Equity Ratios for 2015 are 2.11 and 1.11.

The 5 year low, median and high median Price/Earnings per Share Ratios are 11.69, 13.99 and 16.30. The 10 year corresponding ratios are lower at 10.80, 12.38 and 14.12. The historical ratios are at 10.37, 13.00 and 14.61. Part of the stock's price increases lately has come from an increase in the P/E Ratios. The current P/E Ratio is 22.46 based on a stock price of $199.68 and past 12 month's EPS of 8.89. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $117.68. The 10 year low, median and high median Price/Graham Price Ratios are 0.88, 0.99 and 1.13. The current P/GP Ratio is 1.71 based on a stock price of $199.68. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share 1.80. The current P/B Ratio is 2.91 a values some 62.3% higher. The current P/B Ratio is based on a stock price of $199.68 and BVPS of $68.53. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 1.80%. The current dividend yield of 1.02% is based on dividends of $2.04 and a stock price of $199.68. The current dividend is some 43% lower than the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

There is only one analyst following this stock and the recommendation is a Buy. The 12 month stock consensus is $225.00. This implies a total return of $13.70% with 12.68% from capital gains and 1.02% from dividends.

I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.

Yesterday on my other blog I wrote about Money-Weighted Reporting for Mutual Funds.... learn more . The next stock I will write about will be Penn West Petroleum Ltd. (TSX-PWT, NYSE-PWE)... learn more on Monday, July 25, 2016 around 5 pm.

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 recognized brands such as Apple & Eve, Everfresh, Fairlee, Flavür, Fruité, Graves, Northland, Oasis, Rougemont, Seneca and The Switch. Lassonde is the second-largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry juices, drinks and sauces. Its web site is here Lassonde Industries Inc.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.