Number Cruncher Extra

Number Cruncher Extra – Labrador Iron ore Royalty Corporation, Enghouse Systems Ltd. & Stella-Jones

By January 25, 2022 No Comments

In our last Number Cruncher we discussed how Labrador iron ore royalty corporation (LIF), Enghouse Systems Ltd. (ENGH) & Stella-Jones (SJ) were dividend-paying stocks with growth potential.

Here is the screener we used to find these stocks and that you can add to your personalized screeners.

Let’s start with LIF

The company has an increadible score of 78 in our system with a 90 days increase of 1. The SP score is derived from the solid performance (92.2) and risk (26.7) score. The company has a balance exposure to all factors. The company registered a solid past year with a 46.6% growth in sales and 87.2% in earnings and LIF doesn’t have to be shy of its long-term performance either with a 5-year annual sales growth of 18.9% and 32.2% for earnings growth.

 

By looking at the NOPAT and EVA trend, we know that we have a solid company. The NOPAT increased over the last 5 years, but most importantly, the EVA also grew with a lower volatility than the NOPAT. This means the company grows and creates value for shareholders.

 

Let’s continue with ENGH

The company has a score of 64 in our system with a 90 days decrease of 1. The SP score is derived from the performance (80.4) and risk (31.5) score. The company has a quality bias with a score of 77. The company has achieved healthy five-year sales and EPS growth of 10.3% and 16.5% respectively, but the lack of growth this year has been severly punished by the market this year has shown by its momentum factor of 36.

 

ENGH has a solid history of profitability and growth, but its valuation was deemed too high by our system. We seem to be at a turning point where valuation is returning to our system’s prediction.

Finally, SJ.

The company has a score of 70 in our system with a 90 days increase of 4. The SP score is derived from the performance (76) and risk (26.3) score. The company has a quality bias with a score of 79. SJ has been able to achieve respectable sales growth of 10.3% and earnings growth of 18% in the last 5 years, but most importantly, the company has grown smoothly year after year, a key attribute that shows the sustainability of their growth.

 

Stella-Jones delivered strong results, but the market reacted by contracting its valuation. The FGV tells us that Stella-Jones has the third lowest valuation in the last 5 years.

 

If you have any questions about the article, feel free to contact Anthony :
Amenard@Inovestor.com

If you would like to sign up for a free trial and learn how Inovestor can benefit you, contact Olivier:
Olamothe@Inovestor.com