Lassonde Industries logo

Lassonde Industries

LAS-A.TO
55
Beverages - Non-Alcoholic · Consumer Defensive
Price
C$218.50
-0.51 (-0.23%)
Market Cap
C$1.49B
Exchange
Toronto Stock Exchange
Winston Score
55
Winston looking curious
Winston is curious
A decent business — some strong pillars, some weaker.

Winston Score between 40 and 70. The stock passes some quality checks but not all.

Lassonde Industries is a Canadian food and beverage company that makes fruit juices, drinks, and specialty foods. Its best-known brands include Oasis, Allen's, and Sun-Rype, and it sells products to grocery stores, retailers, and foodservice customers across Canada and the United States. It is one of the largest juice producers in North America.

Lassonde earns money by manufacturing and selling packaged beverages and food products, with revenue coming from both its own brands and private-label contracts made for retailers. The company operates primarily in Canada and the U.S., generating roughly $2 billion in annual sales, and its scale in juice production and long retailer relationships give it a degree of stability. The main risk the business faces is rising input costs — particularly fruit concentrate and packaging materials — which can squeeze margins when the company cannot pass those costs on to customers quickly enough.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+49.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (2%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

1.1%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$11M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Winston looking concerned
Revenue declining

Lassonde Industries's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
28.4%
Modest — 28.4% gross margin
Operating Margin
7.8%
Modest — 7.8% operating margin
ROCE
3.2%
Weak — 3.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+6.1%
Slow sales growth (6.1% YoY)
EPS YoY
+41.0%
Earnings growing fast (41.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
190%
Turns 190% of profit into real cash
FCF Margin
5.4%
Thin free cash flow (5.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.37
Conservative — low debt load (0.37)
Interest Cover
6.42x
Adequate interest coverage (6.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio
10.6x
Attractive valuation — P/E 10.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+1.4
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield
2.13%
Moderate income — 2.13% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+11.9%
Dividend growing fast (11.9% YoY)

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