An increase in a company’s gross margins is a positive characteristic, as it shows its ability to reduce the costs of offering its goods/services over a span of several years. Higher gross margins equals a greater flow of earnings to shareholders. In certain industries, such as retail and airlines, margins are everything and with improved margins of even half a percent, it is good news for investors and this could apply to the companies on our list.
MDC Partners Inc. (TSX: MDZ.A) – $23.79
Advertising & Marketing
MDC Partners Inc. is a provider of marketing communications services. The Company, through its subsidiaries, provides customized marketing, activation, communications and consulting services, including advertising and consumer communication services, media management and effectiveness across all channels, interactive and mobile marketing, direct marketing, database and customer relationship management, sales promotion, corporate communications, market research, data, analytics and insights, corporate identity, design and branding, social media, marketing, product and service innovation, ecommerce and other related services.
- Market Cap: $1,186,116,146
- Gross Margin (2014): 34.7%
- Gross Margin (2013): 33.6%
- Gross Margin (2012): 31.0%
Acadian Timber Corp. (TSX: ADN) – $18.39
Forest & Wood Products
Acadian Timber Corp. (Acadian) is a supplier of primary forest products in Eastern Canada and the northeastern United States. The Company has two segments: New Brunswick Timberlands and Maine Timberlands. Acadian owns and manages approximately 761,000 acres of freehold timberlands in New Brunswick (NB Timberlands), approximately 310,000 acres of freehold timberlands in Maine (Maine Timberlands) and provides management services relating to approximately 1.3 million acres of Crown licensed timberlands. Acadian’s products include softwood and hardwood sawlogs, pulpwood and biomass by-products, sold to approximately 90 regional customers.
- Market Cap: $306,753,799
- Gross Margin (2014): 36.6%
- Gross Margin (2013): 33.4%
- Gross Margin (2012): 33.0%
Tribute Pharmaceuticals Canada Inc. (TSXV: TRX) – $2.08
Biotechnology & Medical Research
Tribute Pharmaceuticals Canada Inc. is a specialty pharmaceutical company with a primary focus on the acquisition, licensing, development and promotion of healthcare products in Canada. The Company targets several therapeutic areas in Canada with a particular interest in products for the treatment of neurology, pain, urology, dermatology and endocrinology/cardiology. Its current portfolio consists of 13 marketed products in Canada, including NeoVisc (Triple and Single Dose), Uracyst, Bezalip SR, Soriatane, Cambia, Fiorinal, Fiorinal C, Visken, Durela, Proferrin, Resultz, Viskazide and Collatamp G.
- Market Cap: $236,536,941
- Gross Margin (2014): 54.1%
- Gross Margin (2013): 44.6%
- Gross Margin (2012): 41.9%
DirectCash Payments Inc. (TSX: DCI) – $13.20
Business Support Services
DirectCash Payments Inc. (DC Payments) is a full-service provider of payment processing and automated banking machines (ATM) managed solutions. The Company provides ATM, point of sale (POS), and transaction processing services to financial institutions, corporations and Government, and retailers across Canada. It also provides switch and transaction processing services on ATMs and for debit and credit cards and related services.
- Market Cap: $231,000,406
- Gross Margin (2014): 51.1%
- Gross Margin (2013): 50.3%
- Gross Margin (2012): 47.7%
Air Canada (TSX: AC) – $11.96
Airlines
Air Canada is a domestic, the United States trans-border and international airline and provider of scheduled passenger services in the Canadian market, the Canada-United States trans-border market and in the international market to and from Canada. Together with its Air Canada Express regional partners, Air Canada serves close to 35 million passengers annually and provides direct passenger service to more than 175 destinations on five continents.
- Market Cap: $3,479,079,887
- Gross Margin (2014): 56.2%
- Gross Margin (2013): 55.8%
- Gross Margin (2012): 54.1%
