This once high-flying stock is trading at a discount, yet it trounced earnings estimates, posting EPS of $0.35 compared to the $0.18 forecast.
SodaStream International Ltd. (SODA)
from Validea Hot List Newsletter
Strategy: Value Investor
Based on: Benjamin Graham
SodaStream International Ltd. (SODA), formerly Soda-Club Holdings Ltd., manufactures home beverage carbonation systems, which enable consumers to transform ordinary tap water into carbonated soft drinks and sparkling water. The Company’s products include soda makers, CO2 refills, flavors and carbonation bottles.
Guru Score: 100%
SALES: [PASS]
The investor must select companies of “adequate size”. SODA’s sales of $572.0 million, based on trailing 12 month sales, pass this test.
CURRENT RATIO: [PASS]
SODA’s current ratio of 2.24 passes the test.
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [PASS]
The long-term debt for SODA is $0.0 million, while the net current assets are $177.0 million. SODA passes this test.
LONG-TERM EPS GROWTH: [PASS]
SODA’s EPS growth over that period of 3,493.3% passes the EPS growth test.
P/E RATIO: [PASS]
SODA’s P/E of 13.72 (using the current PE) passes this test.
PRICE/BOOK RATIO: [PASS]
SODA’s Price/Book ratio is 1.07, while the P/E is 13.72. SODA passes the Price/Book test.
John Reese, Validea Hot List Newsletter, www.validea.com, 877-439-0506, March 13, 2015