Is it a good company at a reasonable price? This is a dividend growth stock. It has not done as well over the past 5 years as previously, but analyst think that it will grow again. You might want to buy for diversification purposes. It is a relatively small company with few analysts following it. My testing says that the stock price is 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 the stock price has climbed over the past couple of years. It was up 26% in 2023, and 32% in 2024. The stock price is up 14% so far this year. The year end stock price has had a peak in the past being at $256.02 in 2017 and been able to return to this price. Current price is $221.00. The peak coincided with two years of very low increases in revenue and that is probably why the price fell. The P/E Ratio was 19.89 in 2017 and is 11.78 today. It certainly did not help with stock price when they cut the dividend in 2019 and again in 2022.
If you had invested in this company in December 2014, for $1,040.00 you would have bought 8 shares at $130 per share. In December 2024, after 10 years you would have received $212.48 in dividends. The stock would be worth $1,478.64. Your total return would have been $1,691.12. This would be a total return of 5.30% per year with 3.58% from capital gain and 1.71% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $130.00 | $1,040.00 | 8 | 10 | $212.48 | $1,478.64 | $1,691.12 |
The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at 2.02%. The 5, 10 and historical median dividend yields are low (below 2%) at 1.94%, 1.63%, and 1.81%. The dividend growth is moderate (8% to 14% ranges) at 9% per year over the past 5 years. The last dividend increase was 10% and was done in 2025. Note that dividends have gone down as well as up. Dividends were cut in 2022 and 2023. Over the last 34 years, dividends were increase in 20 years and decreased in 5 years.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 24% with 5 year coverage at 24%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 21% with 5 year coverage at 23%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 10% with 5 year coverage at 10%. The DPR for 2024 for Free Cash Flow (FCF) is good at 28% with 5 year coverage at 22%. There is no agreement on what the FCF is.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 23.91% | 23.95% |
| AEPS | 21.00% | 23.24% |
| CFPS | 10.06% | 10.25% |
| FCF | 27.29% | 21.97% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.36 and currently at 0.30. The Liquidity Ratio for 2024 is good at 1.52 and low at 1.34 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.93 and currently at 1.51. The Debt Ratio for 2024 is good at 2.05 and 1.95 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.95 and 0.95 and currently fine at 2.05 and 1.05.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.36 | 0.30 |
| Intang/GW | 0.66 | 0.55 |
| Liquidity | 1.52 | 1.34 |
| Liq. + CF | 1.93 | 1.51 |
| Debt Ratio | 2.05 | 1.95 |
| Leverage | 1.95 | 2.05 |
| D/E Ratio | 0.95 | 1.05 |
The Total Return per year is shown below for years of 5 to 34 to the end of 2024. 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. |
|---|---|---|---|---|---|
| 2019 | 5 | 9.04% | 5.32% | 3.52% | 1.80% |
| 2014 | 10 | 9.66% | 5.30% | 3.58% | 1.71% |
| 2009 | 15 | 9.50% | 10.88% | 8.69% | 2.19% |
| 2004 | 20 | 10.96% | 12.10% | 9.83% | 2.26% |
| 1999 | 25 | 11.22% | 13.10% | 10.73% | 2.36% |
| 1994 | 30 | 10.69% | 11.99% | 9.86% | 2.12% |
| 1990 | 34 | 10.25% | 13.76% | 11.12% | 2.65% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.08, 9.91 and 12.52. The corresponding 10 year ratios are 13.85, 16.92 and 19.93. The corresponding historical ratios are 11.43, 13.15 and 15.53. The current ratio is 12.34 based on a stock price of $221.00 and EPS estimate for 2025 of $17.91. The current ratio is below the low ratio of the 10 year median ratio. 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 7.30, 9.91 and 12.52. The corresponding 10 year ratios are 13.55, 16.05 and 18.55. The corresponding historical ratios are 11.00, 13.51 and 15.72. The current ratio is 11.98 based on a stock price of $221.00 and AEPS estimate for 2025 of 18.45. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $254.14. The 10-year low, median, and high median Price/Graham Price Ratios are 0.91, 1.08 and 1.25. The current ratio is 0.87 based on a stock price of $221.00. 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 1.64. The current ratio is 1.42 based on a Book Value of $1,061.33, Book Value per Share of $155.58 and a stock price of $221.00. The current ratio is 14% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 8.98. The current ratio is 10.67 based on Cash Flow per Share estimate for 2025 of $20.71. The current ratio is 20% above 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 1.81%. The current dividend yield is 1.99 based on a stock price of $221.00 and dividends of $4.40. The current ratio is 10% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median dividend yield of 1.63%. The current dividend yield is 1.99 based on a stock price of $221.00 and dividends of $4.40. The current ratio is 22% above the 10 median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 0.67. The current ratio is 0.52 based on Revenue estimate for 2025 of $2,901M, Revenue per Share of $425.27 and a stock price of $221.00. the current ratio is 22% 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 probably cheap. The 10 year median dividend yield test says this. It is confirmed by the P/S Ratio test. Other testing generally says the company is either cheap or reasonable.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $252.75 with a high of $275.00 and low of 231.00. The 12 month consensus stock price consensus price of $252.75 implies a total return of 16.36% with 14.37% from capital gains and 1.99% from dividends based on a current stock price of $221.00.
There are few entries on Stock Chase for this company. In one for 2025 analysts says it might buy again when there is a pullback. Brian Paradza on Motley Fool thinks that this company will ride out the tariffs just fine. Aditya Raghunath on Motley Fool thinks you should diversify you portfolio with a stock like this. The company put out a press release on Newswire about their fourth quarter results for 2024. The company put out a press release on Newswire about their first quarter of 2025.
Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has one warning out of has a high level of debt.
Lassonde Industries Inc is in the 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 Monday, June 23, 2025 around 5 pm.
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