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stock pick

Store located in Santiago, Chile. Baby Infanti.Silfa/Dorel

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.

Montreal-based Dorel Industries Inc. (market cap $1.3-billion) makes an array of consumer products, ranging from child items like strollers and car seats, to recreational products like bicycles, to home furnishings.

Dorel gets strong interest from the Ben Graham-based guru model because of strong financials (2.53 current ratio; $318-million in long-term debt vs. $617-million in net current assets) and good valuation (trades for 12 times trailing 12-month earnings and 1.0 times book value).

Other useful stats:

  • Also has a 0.52 price/sales ratio
  • Offers 3 per cent dividend yield
  • Has $6.38 in free cash per share and 15.6 per cent free cash flow yield

Click here to read the full report for a detailed breakdown.

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