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An oil services small cap with big earnings per share

Calgary-based Horizon North Logistics provides mobile structures, camp management and catering, matting solutions, and marine transportation services in support of oil sands development, oil/gas exploration, mining and infrastructure projects in Western Canada.

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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 has a distribution agreement with Validea.ca. Try it.

Calgary-based Horizon North Logistics provides mobile structures, camp management and catering, matting solutions, and marine transportation services in support of oil sands development, oil/gas exploration, mining and infrastructure projects in Western Canada.

The company, which boats a $700-million market cap, features exceptional long-term EPS growth of 96.3 per cent (based on average of 3 and 5 year growth rates) and long-term sales growth of 45.8 per cent (using average of 3, 4, and 5 year sales growth rates).

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Horizon North trades for just 10.6 times trailing 12-month EPS, making for a stellar 0.11 P/E-to-Growth ratio, which the Peter Lynch-based model likes.

The James O'Shaughnessy-based model also appreciates that it has increased EPS in each year of past half-decade, and has key combination of low 1.4 price/sales ratio and solid 76 relative strength.

Other data points:

  • Free cash flow yield of 19.5 per cent
  • Paying dividend yield of 3.9 per cent
  • Return on equity of 26 per cent

Click here for a complete breakdown of Validea's investing guru report.

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