In our last Number Cruncher we discussed how Spin Master (TOY), Linamar (LNR) & Sleep country holdings (ZZZ) generate solid free cash flows. Now, we will look at these stocks with our software Stockpointer.
Here is the screener we used to find these stocks
Let’s start with TOY
The company has a high score of 68 in our system. The SP score is derived from the performance (68.5) and risk (32.1) score. The company doesn’t distinguish itself by its factor exposure. The important EPS growth in the last year is principally due to poor performance in the last year. Although, The company has an impressive 5-year EPS growth of 53.1%.
The company has a ESG risk rating stranding at 13.2 which is much lower than the S&P/TSX which stands around 20. With a score of 7 of its overall managed risk score, the company seems to take desirable actions towards its notable material ESG issues. The overall exposure score of the company towards ESG issues is relatively low-to-moderate at 20.2.
Let’s continue with LNR.
LNR has a solid SP score of 67 fueled by both its strong performance (63.9) and risk (21.1) score. Our system evaluates LNR to be a value company with a quality tilt. The poor performance in all the metrics reflect the cyclicality of their business, but these should improve going forward given the strong demand by consumers.
The MVA represnts the premium that the market attributes to the company. Currently, the company is in the middle of its historical valuation. The company not expensive, but still more expensive than in 2019-2020.
Finally, ZZZ.
ZZZ has a solid SP score of 73 fueled by both its strong performance (77.8) and risk (28.6) score. Our system evaluates ZZZ to be a company of quality due to its score of 89. The company growth much higher than its historical norm ( 1-year 30.7% VS 5-year 12.4%). Earnings growth follows the path buth with a stronger trend.
The company’s share price is much more volatile than the result of the company. The NOPAT is fearly stable and the EVA tends to grow over time and generate value for its shareholders.
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