Is it a good company at a reasonable price? They hit a peak in 2017/18 and cut their dividends. This can be seen in the Total Return chart below. Cutting dividends is never a good sign. However, in 2024, they raised the dividend some 82% over that paid in 2023 and higher than it has ever been. Dividend increases are a good sign. With this increase the dividend to date have increased by 9.04% and 9.66% per year over the past 5 and 10 years. This is a consumer stock and it does have an unstable dividend history. On the other hand, the stock price is testing as relatively cheap.
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.
When I was updating my spreadsheet, I noticed that I wasted too much time trying to find out information on this company. It does not have much on its site for MD & A and other sites have little information. However, this company did much better in 2023 than in the recent past. The first quarter of 2024 is good also. There are more estimates given currently on this stock than in the past, and this is a positive.
The current dividend yield is moderate with dividend growth restart, but has been inconsistent. The current dividend yield is moderate (2% to 4%) at 2.78%. The 5, 10 and historical dividend yields are low (below 2%) at 1.82%, 1.39%, and 1.78%. The dividend growth to the end of 2023 for the last 5 years is negative at 6%. However, dividends went up 100% with the increase in 2024 and dividends increase between 2023 and 2024 is 82%. The dividend growth for the last 5 years to date is 9% (but for the last 10 years is down by 0.7% per year). Over the past 33 years, dividends have been increased 19 times and decreased 5 times.
The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 17% with 5 year coverage at 24%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 17% with 5 year coverage at 24%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 7% with 5 year coverage at 10%. The DPR for 2023 for Free Cash Flow (FCF) is good at 13% with 5 year coverage at 21%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 17.15% | 24.16% |
| AEPS | 16.69% | 24.04% |
| CFPS | 7.43% | 10.34% |
| FCF | 12.71% | 21.24% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.20 and currently at 0.19. The Liquidity Ratio for 2023 is good at 1.71 and 1.72 currently. The Debt Ratio for 2023 is good at 2.49 and 2.50 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.67 and 0.67 and currently at 1.67 and 0.67.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.20 | 0.19 |
| Intang/GW | 0.53 | 0.52 |
| Liquidity | 1.71 | 1.72 |
| Liq. + CF | 2.27 | 2.10 |
| Debt Ratio | 2.49 | 2.50 |
| Leverage | 1.67 | 1.67 |
| D/E Ratio | 0.67 | 0.67 |
The Total Return per year is shown below for years of 5 to 33 to the end of 2023. 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 chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2018 | 5 | -6.26% | -5.21% | -6.78% | 1.57% |
| 2013 | 10 | -10.72% | 4.95% | 2.96% | 1.99% |
| 2008 | 15 | 7.25% | 13.22% | 10.24% | 2.98% |
| 2003 | 20 | 9.47% | 12.08% | 9.48% | 2.59% |
| 1998 | 25 | 8.60% | 10.78% | 8.61% | 2.18% |
| 1993 | 30 | 8.51% | 11.37% | 9.11% | 2.26% |
| 1990 | 33 | 8.54% | 13.39% | 10.54% | 2.84% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.58, 15.19 and 17.80. The corresponding 10 year ratios are 15.26, 17.59 and 20.14. The corresponding historical ratios are 8.14, 13.18 and 15.93. The current P/E Ratio is 9.43 based on a stock price of $144.00 and EPS estimate for 2024 of $15.27. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Earnings per Share (AEPS) Data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 10.76, 13.84 and 16.92. The corresponding 10 year ratios are 15.26, 17.59 and 19.93. The current P/AEPS Ratio is 9.43 based on a stock price of $144.00 and AEPS estimate for 2024 of $15.27. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $219.64. The 10-year low, median, and high median Price/Graham Price Ratios are 1.07, 1.24 and 1.40. The current P/GP Ratio is 0.66 based on a stock price of $144.00. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 1.94. The current P/B Ratio is 1.03 based on a stock price of $144.00, Book Value of $958M and Book Value per Share of $140.41. The current ratio is 47% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 9.70. The current P/CF Ratio is 5.65 based on Cash Flow per Share estimate for 2024 of $25.50, Cash Flow of $174.00 and a stock price of $144.00. The current ratio is 42% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 1.78%. The current dividend yield is 2.78% based on dividends of $4.00 and a stock price of $144.00. The current dividend yield is 56% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median dividend yield of 1.39%. The current dividend yield is 2.78% based on dividends of $4.00 and a stock price of $144.00. The current dividend yield is 99% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 0.71. The current P/S Ratio is 0.41 based on Revenue estimate for 2024 of $2,423M, Revenue per Share of $355.19 and a stock price of $144.00. The current ratio is 43% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is relatively cheap. The dividend yield tests say that the stock price is cheap and it is confirmed by the P/S Ratio test. All the tests on this stock are pointing to a cheap price.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1), and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $177.30 with a high of $182.00 and low of $175.00. The consensus price of $177.30 implies a total return of 25.90% with 23.13% from capital gains and 2.78% from dividends based on a current stock price of $144.00.
The last entries on Stock Chase for this stock is 2021. The were positive on this company, but one said buy and one said hold. Stock Chase gives this stock 1 star out to 5. Christopher Liew on Motley Fool said that this company would outperform in 2023 and he was right . Adam Othman on Motley Fool reviews this stock and thought it was good pick in 2023. The company put out a Press Release about their fourth quarter of 2023. The company put out a press release about their first quarter of 2024.
Simply Wall Street via Yahoo Finance put out a report on this stock, and it is rather negative. They have two warnings out on this company of earnings have declined by 0.07% per year over past 5 years; and unstable dividend track record. In this case, Simply Wall Street is right about unstable dividend track record. Simply Wall Street gives this stock 3 and one half stars out of 5. This is quite different than Stock Chase, but I think their rating is most realistic.
Lassonde Industries Inc is food and beverages industry in North America. Its single operating segment generates revenues from the sale of products including ready-to-drink beverages, fruit-based snacks, frozen juice concentrates and specialty food products as well as from rendering services related to the sale of these products. It earns the majority of the revenue in the United States. 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 Waste Connections Inc (TSX-WCN, NYSE-WCN) ... learn more on Wednesday, June 19, 2024 around 5 pm. Tomorrow on my other blog I will write about Financially Resilient.... learn more on Tuesday, June 18, 2024 around 5 pm.
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