Stock price when the opinion was issued
Balance sheet is back in perfect shape for acquisitions. Buying back stock, and at this $72 range must mean there's confidence. Loves its capital allocation. Up 23% YTD. Used to be one of the top serial compounders in Canada, thinks it will return to that. Yield is 1.57%.
Guiding long-term for better-than-GDP organic growth. Acquisitions, cost control, buybacks, and dividends could provide double-digit returns for a very long time.
Good company, CEO has been there a long time. Family controlled. Capital allocation was really good for about 15 years, then started getting more hit and miss. Low organic growth industries, not much more than 3-4%. Acquisitions have let it grow faster than that.
Earnings growth has not lived up to historic record, starting to change. Back-to-back quarters of beating earnings expectations. He's starting to do some research on it.
Happy that stock price has picked up. An investor needs to ask about the valuation and fundamentals. Order book is back to normal levels. Buying back stock. Anticipates $4.50-4.60 EPS this year, which will continue to grow.
Waiting for it rev up its M&A. Serial acquirer, great integrator. Perfect balance sheet, terrific management. One of the highest quality companies in Canada, should trade ~$100 and 20x earnings. He owns a big stake, loves it long term.
Its businesses depend on consumers, so some growth might be capped. Pullback could be a time to look at it, but has already done pretty well over the medium term. Steady-eddy with potentially high valuation. Keep an eye on.