The Canadian penny stocks on our list all have low PEG ratios
SmallCapPower | June 14, 2017: Today we have identified five Canadian penny stocks with low PEG ratios, meaning their earnings growth has not been fully priced into the stock. If these companies meet, or beat, their earnings expectations it should result in big upwards movements in their stock prices.
BrightPath Early Learning Inc. (TSXV: BPE) – $0.79
Personal Services
BrightPath Early Learning Inc, formerly Edleun Group Inc, is a Canada-based company engaged in the operation, acquisition and development of community-based early learning and care centers across Canada. The Company’s segments include Alberta, British Columbia and Ontario. The Company’s segments are engaged in the provision of child development and care services. The Company designs, develops, owns and manages child development and care centers. The Company operates over nine Montessori centers in Ontario. The Company has approximately 5,000 spaces of licensed capacity within over 50 centers located in the provinces of Alberta, Ontario and British Columbia.
- Market Cap: $93,544,506
- Total Revenue (LTM): $69,209,000
- Debt to Equity: 94.6%
- PEG: 0.03
STT Enviro Corp. (TSXV: STT) – $0.31
Industrial Machinery & Equipment
STT Enviro Corp., formerly Semcan Inc., engineers and supplies a range of environmental and industrial products and services. The Company operates through two segments: the Systems & Solutions Group and the Tanks & Industrial Group. For water and wastewater treatment, as well as air emissions clean-up, the Company designs, assembles, delivers and optimizes dry bulk material storage and handling systems for the chemicals used to clean or neutralize pollutants from the unloading systems, storage silos, through to the handling, make-down and transfer systems, including integrated instrumentation and controls.
- Market Cap: $14,132,252
- Total Revenue (LTM): $26,265,590
- Debt to Equity: 6.8%
- PEG: 0.04
Cathedral Energy Services Ltd. (TSX: CET) – $0.96
Oil Related Services and Equipment
Cathedral Energy Services Ltd is a Canada-based company, which is engaged in the business of providing selected oilfield services to oil and natural gas exploration and development entities in western Canada and the United States. The Company carries on its activities in Canada and the United States under the name Cathedral Energy Services with operating division Directional Drilling. The Directional Drilling division provides horizontal, directional and underbalanced drilling services.
- Market Cap: $46,959,792
- Total Revenue (LTM): $80,866,000
- Debt to Equity: 31.8%
- PEG: 0.05
Prairie Provident Resources Inc. (TSX: PPR) – $0.58
Oil & Gas Exploration and Production
Prairie Provident Resources Inc is a Canada-based company engaged in the exploration and development of oil and natural gas properties in Alberta, Canada. The Company’s strategy is to grow organically in combination with acquisitions of conventional oil prospects, which can be developed. Prairie Provident Resources Inc.’s operations are focused primarily at Wheatland and Princess in Southern Alberta targeting the Lithic Glauc formation and consisting of approximately 79,000 net acres, along with an early stage waterflood project at Evi in the Peace River Arch area of Northern Alberta, consisting of approximately 31,550 net acres.
- Market Cap: $67,214,866
- Total Revenue (LTM): $37,855,000
- Debt to Equity: N/A
- PEG: 0.05
Terra Firma Capital Corp. (TSXV: TII) – $0.65
Real Estate Rental, Development & Operations
Terra Firma Capital Corp is a Canada-based real estate finance company that provides customized debt and equity solutions to the real estate industry. The Company focuses on providing real estate financings secured by investment properties and real estate developments throughout Canada and the United States. These financings are made to real estate developers and owners who require shorter-term loans to bridge a transitional period of 1 to 5 years where they require capital at various stages of development or redevelopment of a property.
- Market Cap: $39,049,308
- Total Revenue (LTM): $14,901,660
- Debt to Equity: 141.5%
- PEG: 0.08
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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