Increasing profitability shows management’s ability to cut costs, scale production, and deliver more shareholder value
SmallCapPower | April 29, 2016: A company’s ability to increase its profit margins allows it to boost earnings as well as dividend payouts. Today, we have identified five such businesses with rising profitability ratios during the past five consecutive years.
Westshore Terminals Investment Corp. (TSE:WTE) – $17.96
Coal
Westshore Terminals Investment Corporation is a Canada-based company, which owns all of the limited partnership units of Westshore Terminals Limited Partnership (Westshore), which is a limited partnership. Westshore operates a coal storage and loading terminal at Roberts Bank, British Columbia (the Terminal). Westshore handles coal from mines in British Columbia and Alberta, as well as from mines in the north-western United States.
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Market Cap: $1,790,728,391
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Revenues (LTM): $365,818,000
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Operating Profit (LTM): $207,518,000
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Operating Profit Margin (LTM): 57%
Intertape Polymer Group Inc. (TSE:ITP) – $19.88
Non-Paper Containers & Packaging
Intertape Polymer Group Inc. operates in the specialty packaging industry in North America. The Company develops, manufactures and sells a range of paper and film-based pressure sensitive and water activated tapes, polyethylene and specialized polyolefin packaging films, woven coated fabrics and complementary packaging systems for industrial and retail use. iorientados, S.A. and Intertape Polymer Europe GmbH.
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Market Cap: $1,166,754,716
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Revenues (LTM): $781,907,000
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Operating Profit (LTM): $70,815,000
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Operating Profit Margin (LTM): 9%
Magellan Aerospace Corp (TSE:MAL) – $17.78
Aerospace & Defense
Magellan Aerospace Corporation is a supplier of components to the aerospace industry and in certain applications for power generation projects. Through its wholly-owned subsidiaries, it engineers and manufactures aeroengine and aero structure components for aerospace markets, including advanced products for defense and space markets and complementary specialty products. It operates in two segments: Aerospace and Power Generation Project.
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Market Cap: $995,373,917
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Revenues (LTM): $951,467,000
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Operating Profit (LTM): $107,045,000
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Operating Profit Margin (LTM): 11%
Guardian Capital Group Ltd. (TSE:GCG) – $18.61
Investment Management & Fund Operators
Guardian Capital Group Limited (Guardian) is a Canada-based diversified financial services company. It serves the wealth management needs of a range of clients through its business segments. The Company operates in three segments: the investment management segment, which involves the earning of management fees relating to investment management services provided to clients; the financial advisory segment, which relates to the earning of sales commissions and administrative services revenue from assets under administration, and the corporate activities and investments segment, which relates to the investment of the Company’s securities holdings, as well as corporate management and development activities.
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Market Cap: $569,846,808
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Revenues (LTM): $132,911,000
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Operating Profit (LTM): $42,998,000
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Operating Profit Margin (LTM): 32%
goeasy Ltd. (TSE:GSY) – $19.00
Appliances, Tools & Housewares
goeasy Ltd., formerly easyhome Ltd., is a Canada-based service provider of goods and alternative financial services. The Company serves customers through two divisions: easyhome and easyfinancial.
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Market Cap: $258,726,665
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Revenues (LTM): $304,273,000
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Operating Profit (LTM): $48,052,000
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Operating Profit Margin (LTM): 16%