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Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
John B. Sanfilippo & Son, Inc. processes and distributes tree nuts and peanuts in the United States. Its nuts are sold under a range of private labels and brand names, including under the Fisher, Orchard Valley Harvest and Sunshine Country brand names. JBSS also offers such products as peanut butter, almond butter, candy and confection, natural snacks and trail mixes, sunflower seeds, and dried fruit. It has a market cap of $600-million (U.S.).
The company has grown EPS at a 37-per-cent clip over the long term (using avg of 3, 4, & 5 yr EPS growth rates), part of why it gets strong interest from Peter Lynch model. The Lynch model also likes its 0.57 P/E-to-growth ratio.
It has a stellar 71.3-per-cent return on retained earnings (those not paid out as dividends) over the past decade, which the Warren Buffett-based model likes.
The company has increased EPS in each year of past half decade, helping it earn strong interest from the James O'Shaughnessy growth approach. The O'Shaughnessy model also likes its combination of a high relative strength (95) and low price/sales ratio (0.7).
The Martin Zweig model likes that debt/equity ratio is well below the industry average (41 per cent vs. 104 per cent).
JBSS trades for a reasonable 16 times forward 12-mo. EPS. It has a 2.1 current ratio, a sign of good liquidity, according to the Benjamin Graham-based approach. And it has $150-million net current assets vs. $32-million long term debt, which the Graham-based model also likes.
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