I do not own this stock of Lassonde Industries (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. Reports have been favorable and they suggest buying it for dividends and long term capital gains.
The Ink Research on Insider ownership always seems to be old. So either Ink is not picking it up or they are late in filing this information.
Dividends yields are moderate as is the dividend growth. The current dividend is 1.11% with 5, 10 and historical median at 1.11%, 1.67% and 1.76%. Dividend growth has been between 10 and 13% per year except for the past 10 year period where it is just 4.4% per year. See the chart below.
They can well afford their dividends as the Dividend Payout Ratios are low. The Dividend Payout Ratio for 2017 is 18% with 5 year coverage at 21%. The DPR for CFPS for 2017 was 9.5% with 5 year coverage at 9%.
The Total Return per year is show below for years of 5 to 27. 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 charts below.
Most of the total return is from capital gains. The shareholders have done well with this stock.
| Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|
| 5 | 13.73% | 29.22% | 27.75% | 1.48% |
| 10 | 4.40% | 21.77% | 20.25% | 1.53% |
| 15 | 13.29% | 21.86% | 20.13% | 1.73% |
| 20 | 11.20% | 15.11% | 7.18% | 7.93% |
| 25 | 10.57% | 15.13% | 13.85% | 1.28% |
| 26-27 | 10.87% | 17.35% | 15.58% | 1.76% |
The 5 year low, median and high median Price/Earnings per Share Ratios are 15.79, 18.10 and 20.37. The 10 year corresponding ratios are 11.46, 13.59 and 15.72. The historical corresponding ratios are 11.23, 13.13 and 15.14. It looks like the run up in stock price has a large component in increasing P/E Ratios. The current P/E Ratio is 21.60 based on 2017 EPS estimate of 13.47 and a current stock price of $291.01. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of %161.81. The 10 year low, median and high median Price/Graham Price Ratios are 0.88, 1.05 and 1.21. The current P/GP Ratio is 1.80 based on a stock price of $291.01. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share of 1.82. The current P/B Ratio is 3.37 based on Book Value of $651M, Book Value per share of $86.39 and a stock price of $291.01. The current P/B Ratio is some 85% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 1.76%. The current dividend yield is 1.11% based on dividends of $3.24 and a stock price of $291.01. The current dividend yield is some 37% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
The 10 year median Price/Sales (Revenue) Ratio is 0.64. The current P/S Ratio is 1.26 based on 2017 Revenue estimate of $1,613M, Revenue per Share of $230.83 and a stock price of $291.01. The current ratio is some 97% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
When I look at analysts’ recommendations I find Buy (1) and Hold (1) recommendations. There seems to be few analysts following this stock. The consensus recommendations would be a Buy. The 12 month stock price is $282.50. This implies a total loss of 1.81% with a capital loss of 2.92% and dividends of 1.11% based on a current stock price of $191.01. The stock price is moving up quickly.
This news release on Cision talks about the company’s takeover of Old Orchard Brands in the US. Ricardo Landis on Simply Wall Street talks about debt levels of this company. The company has good debt levels. Staff Contributor om Darby News Journal says this company’s C-Score is 1 where score can be 0 (not fraudulent book cooking to 6 (high likelihood of fraudulent activity). Will Ashworth on Motley Fool talks about 3 Quebec stocks to buy, including this one. See what analysts are saying about this stock on Stock Chase. There is nothing recent, but nothing bad either.
Lassonde Industries Inc. develops, produces and markets fruit and vegetable juices and drinks. It is a producer of store brand ready-to-drink fruit juices and drinks in the United States and also a producer of cranberry sauces. 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 Power Corp of Canada (TSX-POW, OTC-PWCDF)... learn more on Friday, June 8, 2018 around 5 pm. Tomorrow on my other blog I will write about Something to Buy June 2018.... learn more on Thursday, June 7, 2018 around 5 pm.
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.
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