Skip to main content

The Globe and Mail

This maker of lift trucks would have investing gurus positioning to buy

A hydrogen-powered forklift.

SALVATORE SACCO/CNW

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.

Cleveland-based Hyster-Yale Materials Handling makes and services a comprehensive line of lift trucks and aftermarket parts marketed globally primarily under the Hyster and Yale brands. The firm, which has employees in 13 countries around the globe and a market cap of $1.2-billion (U.S.), conducts its business under its subsidiary, NACCO Materials Handling Group.

Hyster-Yale has grown earnings at a 22-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.

Story continues below advertisement

It has grown sales at a 15-per-cent pace over long-term, (using an average of the 3-, 4-, and 5-year sales growth rates) versus the industry average of 4 per cent.

The company's 12.2-per-cent earnings yield (using Joel Greenblatt-based model's EBIT/enterprise value metric) ranks 85th out of thousands of stocks in the market.

Hyster-Yale gets strong interest from the James O'Shaughnessy based growth model, in part because it has increased EPS in each year of the past half-decade. The O'Shaughnessy model also likes its 0.45 price/sales ratio and 83 relative strength.

The company has a 14.4 P/E ratio and 0.65 P/E-to-growth ratio, helping it get strong interest from the Lynch model. Debt/equity ratio (16 per cent) comes in well below Lynch model's 80-per-cent limit.

The 28-per-cent return on equity (12 month) more than doubles the industry average of 11 per cent. Low price/sales ratio and $5.93 in free cash per share help earn it some interest from Kenneth Fisher-based model.

John Reese is long HY.

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

Story continues below advertisement

Read other research reports here.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.