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.
Headquartered in Davenport, Fla., Centerstate Banks (CSFL-Q) is the holding company for CenterState Bank of Florida. It operates through 72 branches in 22 counties throughout the state, providing traditional deposit and lending products and services to its commercial and retail customers. The company also provides correspondent banking and capital market services for approximately 600 community banks nationwide.
Its stock trades for just 14 times projected 12-month earnings-per-share. It has grown earnings at a 36-per-cent pace over the long term (using an average of the 3- and 4-year EPS growth rates), which the Peter Lynch-based model likes.
The Lynch-based model likes its 0.53 P/E-to-growth ratio (using a trailing 12-month P/E of 18.8).
The Martin Zweig-based model likes that the EPS growth over past the four quarters (567, 633, 175, and, most recently, 37.5 per cent) is greater than the long-term average.
Its 12-month relative strength of 90 impresses the Motley Fool-based strategy, which also likes that the company's after-tax profit margins are high (20.4 per cent).
The stock also has a 12-per-cent equity/assets ratio, beating the 5-per-cent target the Lynch model uses on financials.
John Reese is long CSFL.
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