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Black Diamond Group an accommodating stock

Calgary-based Black Diamond Group rents out and sells temporary housing and offices.

Marc Rimmer/for Report on Business

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 Black Diamond Group Ltd. provides remote workforce accommodations, modular space solutions and oilfield products and services in Canada, the United States and Australia. Its clients include firms in the oil, natural gas, mining, power, construction, engineering, military, government and education fields. It has a $962-million market cap.

It has grown EPS at a 34.5-per-cent rate over long term (using average of the 3, 4, and 5 year EPS growth rates) and sales at a 45 per cent rate (using average of the 3, 4, and 5 year sales growth rates).

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The Peter Lynch-based model has strong interest in it thanks to reasonable 17.6 P/E, which makes for 0.51 P/E-to-Growth ratio. The company has solid 15.6 per cent return on capital.

And the Martin Zweig model likes that it has 44-per-cent debt/equity ratio, which is about 1/5th of industry average. The company has $2.62 in free cash flow per share and 3.6 per cent dividend yield.

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

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