These Canada-listed companies maintain huge sums of cash on their books, which may be used in a number of ways to increase value
SmallCapPower | May 19, 2016: Have you ever heard the expression “Cash is King?” For those investors seeking value, the five TSX-listed stocks on our list have extremely high cash-to-market cap ratios. In addition, these companies have relatively low debt levels, as signified by their debt to total capital ratios. With some even trading at negative enterprise values (EVs), we believe these stocks may be undervalued.
QLT Inc. (TSE:QLT) – $1.90
Biotechnology & Medical Research
QLT Inc. is a biotechnology company that is focused on the development and commercialization of ocular products. The Company’s operations consist of clinical development programs focused on its synthetic retinoid, QLT091001, for the treatment of certain age-related and inherited retinal diseases (IRD) caused by retinal pigment epithelium protein 65 (RPE65) and lecithin: retinol acyltransferase (LRAT) gene mutations.
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Market Cap: $100.4 Million
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Cash to Market Cap Ratio (%): 174.97%
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Total Debt to Total Capital (%): 0.0%
Transat AT Inc. (TSE:TRZ) – $8.06
Leisure & Recreation
Transat A.T. Inc. is a Canada-based international tour operator that operates in the holiday travel industry and markets services primarily in the Americas and Europe. The Company’s primary business consists of developing and marketing holiday travel services in package and air-only formats. It operates as an outgoing, as well as an incoming tour operator by bundling services bought in Canada and abroad, and reselling them primarily in Canada, France, the United Kingdom and in over 10 other European countries, directly or through intermediaries.
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Market Cap: $296.3 Million
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Cash to Market Cap Ratio (%): 112.31%
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Total Debt to Total Capital (%): 0.0%
Velan Inc. (TSE:VLN) – $17.75
Industrial Machinery & Equipment
Velan Inc. is a manufacturer of steel industrial valves. The Company designs, manufactures and markets a range of industrial valves for use in various industries, including power generation, oil and gas, refining and petrochemicals, chemicals, pulp and paper, liquefied natural gas and cryogenics, mining and shipbuilding. Its product lines are grouped into the broad categories of gate, globe, check and quarter-turn valves.
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Market Cap: $109.5 Million
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Cash to Market Cap Ratio (%): 124.20%
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Total Debt to Total Capital (%): 1.1%
Western Potash Corp. (TSE:WPX) – $0.19
Agricultural Chemicals
Western Potash Corp. is a Canada-based development-stage potash company that is engaged in the business of the acquisition, exploration and development of potash mineral properties. It owns or holds, directly or indirectly, interests in Milestone Project, a potash property located in southern Saskatchewan, approximately 35 kilometers southeast of Regina.
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Market Cap: $88.8 Million
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Cash to Market Cap Ratio (%): 101.84%
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Total Debt to Total Capital (%): 0.0%
Athabasca Oil Corp. (TSE:ATH) – $1.33
Oil & Gas Exploration and Production
Athabasca Oil Corporation is a Canada-based energy company, which is focused on the exploration for, and development and production of, light oil and liquids-rich natural gas from regions in northwestern Alberta, Canada, and bitumen from oil sands in the Athabasca region of northeastern Alberta, Canada. Its segments are Light Oil, including the Company’s assets, liabilities and operating results for the exploration, development and production of unconventional oil, natural gas and natural gas liquids located in various regions in the province of Alberta, and Thermal Oil, including the Company’s assets, liabilities and operating results for the exploration, development and production of bitumen from sand and carbonate rock formations located in the Athabasca region of northern Alberta.
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Market Cap: $538.3 Million
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Cash to Market Cap Ratio (%): 97.36%
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Total Debt to Total Capital (%): 25.2%
