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 in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.
When I was updating my spreadsheet, I noticed Dividends have mostly gone up on this stock, but they have been flat and have declined before. Dividends went up by 32.8% in 2019 but then declined by 26.5% in 2019. If you take 2019 into account, the 5 year increase in dividends is 10.29%, but the 10 year is a decline of 0.11%.
The dividend yield is low with the current yield at 1.25%. The 5, 10 and historical dividend yields are 1.11%, 1.495 and 1.76%. The dividend growth is current good (over 15%) at 15.48% per year over the past 5 years to the end of 2018. Dividend growth has been uneven. In the past dividends have been flat or have declined in some years. The last year with a dividend decline was 2019. The dividend increase to date is lower at 10.29% per year over the past 5 years.
The Dividend Payout Ratios are quite good. The DPR for EPS in 208 was 32% with 5 year coverage at 23%. The DPR for CFPS for 2018 was 13% with 5 year coverage at 10%.
Debt Ratios are all good. The Long Term Debt/Market Cap Ratio for 2018 is 0.21. The Liquidity Ratio for 2018 is 1.73 with 5 year median also at 1.73. The Debt Ratio is 2.21 with 5 year median at 2.13. The Leverage and Debt/Equity Ratios are 1.83 and 0.83 respectively with 5 year medians at 2.00 and 1.00 respectively.
The Total Return per year is shown below for years of 5 to 28 to the end of 2018. 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.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | 15.48% | 15.22% | 13.71% | 1.51% |
| 2008 | 10 | 4.50% | 22.09% | 19.88% | 2.21% |
| 2003 | 15 | 15.28% | 17.32% | 15.51% | 1.81% |
| 1998 | 20 | 12.66% | 14.30% | 5.84% | 8.46% |
| 1993 | 25 | 11.73% | 14.16% | 12.60% | 1.55% |
| 1990 | 28 | 11.52% | 15.98% | 13.96% | 2.02% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.83, 18.30 and 20.60. The 10 year corresponding ratios are 13.68, 15.93 and 18.19. The corresponding historical ratios are 11.43, 13.15 and 15.53. The current P/E Ratio is 18.81 based on a stock price of $190.02 and 2018 EPS estimate of $10.10. This stock price testing suggest that the stock price is relatively expensive, but just into the expensive range.
I get a Graham Price of $146.30. The 10 year low, median, and high median Price/Graham Price Ratios are 1.01, 1.18 and 1.35. The current P/GP Ratio is 1.30 based on a stock price of $190.02. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median Price/Book Value per Share Ratio of 1.95. The current P/B Ratio is 2.02 based on Book Value of $655M, Book Value per Share of $94.19 and a stock price of $190.02. The current ratio is 3.6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get an historical median dividend yield of 1.76%. The current dividend yield is 1.25% based on Dividends of $2.38 and a stock price of $190.02. The current yield is 29% 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 0.68. The current P/S Ratio is 0.78 based on 2018 Revenue estimate of $1,694M, Revenue per Share of $222.83 and a stock price of $190.02. The current ratio is 15% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
Results of stock price testing is probably relatively reasonable but above the median as shown by the P/B Ratio and P/S Ratio testing. You have wonder about the dividend yield testing. The dividends have recently declined, but this was after a big increase in 2018. The P/E Ratio test is showing the stock as relatively expensive, but this is not one of my favourite tests.
When I look at analysts’ recommendations, I find one Hold recommendation. So, the consensus would be a Hold. The 12 month stock price is $195.00. This implies a total return of 3.87% with 2.62% from capital gains and 1.25% from dividends.
See what analysts are saying about this stock on Stock Chase. It is not well followed but comments are positive. Brian Pacampara,on Motley Fool talks about Desjardins Securities downgrading this stock in February 2019 because of bad fourth quarter. A writer on Simply Wall Street says the company’s debt level is fine. CNW Group has published via Yahoo Finance the first quarter results for this company. Larry Jones on Avondale Advocate.
Lassonde Industries Inc is Canadian company, engaged in development, manufacturing and marketing of ready-to-drink fruit and vegetable juices and drinks. It also acts as a producer of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces. The company operates through the single segment being the Development, manufacturing, and marketing of ready-to-drink fruit and vegetable juices and drinks and of specialty food products. 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 14, 2019 around 5 pm. Tomorrow on my other blog I will write Gordon Pape and Brookfield.... learn more on Thursday, June 13, 2019 around 5 pm.
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