The Canadian construction stocks on our list all have low EV/EBITDA ratios
SmallCapPower | February 13, 2018: The Trump administration has released its $1.5 trillion infrastructure plan. The plan provides $200 billion over 10 years, growing to an additional $1.3 trillion in investments from municipal and state governments, as well as private entities. About $100 billion is to be used as matched funds made available to states and cities for infrastructure projects, $50 billion given to states as based on miles of rural roads and rural population, while $50 billion goes to federal projects. The Canadian construction stocks on our list all have industry-low EV/EBITDA ratios, making them potential value buys for upcoming infrastructure projects.
Brampton Brick Ltd. (TSX:BBL.A) – $9.00
Construction Materials
Brampton Brick is a Canada-based construction materials company. The Company’s masonry products division manufactures clay brick and a range of concrete masonry products, while its landscape products division manufactures concrete paving stones, walls and accessory products.
- Market Cap: $82.9 Million
- Enterprise Value to EBITDA: 3.9x
- Peer Average Enterprise Value to EBITDA: 13.8x
- YTD Total Return: 2.9%
Badger Daylighting Ltd. (TSX:BAD) – $25.12
Construction & Engineering
Badger Daylighting is a construction company that offers hydro-excavation services, using high pressure water to loosen debris and ground, while vacuuming that water for later disposal. BAD operates in six provinces in Canada and 41 states in the US.
- Market Cap: $932.0 Million
- Enterprise Value to EBITDA: 8.5x
- Peer Average Enterprise Value to EBITDA: 13.8x
- YTD Total Return: -7.4%
Napec Inc. (TSX:NPC) – $1.94
Construction & Engineering
Napec is a Canada-based construction company focused in the energy sector. The Company specializes in the construction and maintenance of electrical transmission and distribution lines. The Company also provides heavy equipment installation, environmental construction and road matting services.
- Market Cap: $204.7 Million
- Enterprise Value to EBITDA: 9.3x
- Peer Average Enterprise Value to EBITDA: 13.8x
- YTD Total Return: 0.0%
Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.
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