With earnings increasing over the past two 12-month periods, the Canadian financial stocks on our list are showing sustained business growth
SmallCapPower | November 22, 2016: As earnings growth is what ultimately supports the increased valuation of a company, when looking for companies to invest in you want to look at their net income. The Canadian financial stocks on our list today have all seen substantial increases in their net income over the past two 12-month periods ranging from about 30% to 120% year over year, which could be a sign of sustainable growth.
Aberdeen Asia-Pacific Income Investment Company Ltd. (TSE:FAP) – $4.65
Closed End Funds
Aberdeen Asia-Pacific Income Investment Company Limited is a closed-end investment company. The Company’s investment objective is to obtain current income and achieve incidental capital appreciation from investment in long-term debt securities. The Company may invest approximately 80% of its total assets in Asian-Pacific debt securities, and may be denominated in an Asian-Pacific Country currency or in Australian, New Zealand or the United States dollars. It may also invest approximately 20% of the Company’s total assets in Australian debt securities.
- Market Cap: $242.24(mm)
- Net Income After Taxes (LTM, CAD, Millions): $13.00
- PoP % Chg (1LTM) in Net Income After Taxes (LTM, CAD): 119.73%
- PoP % Chg (1LT) in Net Income After Taxes (LTM-1, CAD): 122.95%
Alaris Royalty Corp. (TSE:AD) – $20.26
Investment Management & Fund Operators
Alaris Royalty Corp. is a Canada-based company providing capital to private businesses (individually, a Private Company Partner and collectively the Partners). The Company’s operations consist of investments in private operating entities in the form of preferred limited partnership interests, preferred interest in limited liability corporations in the United States, or long-term license and royalty arrangements. The Company is an equity provider to service a niche in the capital market, such as steady growth companies with an entrepreneurial management team, incentivized to grow and maintain control of their business.
- Market Cap: $736.17(mm)
- Net Income After Taxes (LTM, CAD, Millions): $65.46
- PoP % Chg (1LTM) in Net Income After Taxes (LTM, CAD): 28.82%
- PoP % Chg (1LT) in Net Income After Taxes (LTM-1, CAD): 56.51%
Timbercreek Financial Corp. (TSE:TF) – $8.58
Corporate Financial Services
Timbercreek Financial Corp is a Canada-based non-banking commercial real estate lender. The Company provides shorter-duration, customized financing solutions to professional real estate investors. The Company invests in a portfolio of customized mortgage loans secured by commercial real estate, such as multi-residential, office and retail buildings located in urban markets across Canada.
- Market Cap: $632.72(mm)
- Net Income After Taxes (LTM, CAD, Millions): $37.82
- PoP % Chg (1LTM) in Net Income After Taxes (LTM, CAD): 46.93%
- PoP % Chg (1LT) in Net Income After Taxes (LTM-1, CAD): 50.72%
Sprott Inc. (TSE:SII) – $2.32
Investment Management & Fund Operators
Sprott Inc. is an alternative asset management company with five segments: Sprott Asset Management LP (SAM), Global Companies, Sprott Resource Lending Corp. (SRLC), Consulting, and Corporate & Other. The SAM segment offers discretionary portfolio management, as well as asset management services to its branded Funds and Managed Accounts. The Global Companies segment provides asset management services to its branded funds and managed accounts in the United States, and provides securities trading and other transactional services to clients. The SRLC segment is a lender to companies in the mining and energy sectors. The Consulting segment manages its private investment strategies. The Corporate segment provides treasury and shared services to its business units.
- Market Cap: $576.45(mm)
- Net Income After Taxes (LTM, CAD, Millions): $26.68
- PoP % Chg (1LTM) in Net Income After Taxes (LTM, CAD): 174.34%
- PoP % Chg (1LT) in Net Income After Taxes (LTM-1, CAD): 48.99%
