The Canadian penny stocks on our list have been extremely profitable over the past 12 months
SmallCapPower | July 5, 2017: EBITDA is a common operating metric used to judge a company’s ability to generate earnings from its business operations. Expressing EBITDA as a percentage of revenue gives you EBITDA margin, which measures a company’s profitability. Today we have identified four Canadian penny stocks with country-leading EBITDA margins.
Diversified Royalty Corp. (TSX: DIV) – $2.59
Investment Management & Fund Operators
Diversified Royalty Corp. (DIV), formerly BENEV Capital Inc., is a multi-royalty company engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America (Royalty Partners). Its primary objectives are to purchase stable and growing royalty streams from Royalty Partners, and increase distributable cash per share by making accretive royalty purchases. The Company’s Royalty Partners include Franworks Franchise Corp. (Franworks), Sutton Group Realty Services Ltd. (Sutton Group) and Mr. Lube Canada Limited Partnership (Mr. Lube).
- Market Cap: $274,222,618
- YTD Price Change: 0.8%
- EBITDA (LTM): $22,471,000
- EBITDA Margin: 88.0%
Aberdeen Asia-Pacific Income Investment Company Ltd. (TSX: FAP) – $4.75
Closed End Funds
Aberdeen Asia-Pacific Income Investment Company Limited is a closed-end investment company. Its investment objective is to obtain current income and achieve incidental capital appreciation from investment in long-term debt securities. The Company may invest up to 80% of total assets in Asia-Pacific debt securities. At least 20% of the Company’s total assets are invested in Australian debt securities. The Company’s investment portfolio spans across various geographies, including Australia, Bangladesh, Brazil, China, Germany, Hong Kong, India, Indonesia, Malaysia, Mexico, New Zealand, Norway, the Philippines, Republic of South Korea, Singapore, Sri Lanka, Supranational, Thailand, Turkey, the United Kingdom and the United States.
- Market Cap: $245,492,426
- YTD Price Change: 8.0%
- EBITDA (LTM) $21,795,180
- EBITDA Margin: 83.8%
Halmont Properties Corp. (TSXV: HMT) – $0.85
Real Estate Rental, Development & Operations
Halmont Properties Corporation is a Canada-based company that invests directly in commercial real estate, forest properties and securities of companies holding property and infrastructure assets. The Company operates through real estate segment. The Company holds an equity interest in Haliburton Forest & Wildlife Reserve, which owns approximately 80,000 acres of forest lands, a sawmill and other wood processing facilities. The Company has an interest in a commercial real estate joint venture property in the financial district in downtown Toronto, Ontario and an interest in a heritage building located in the theatre district in downtown Toronto.
- Market Cap: $63,548,988
- YTD Price Change: 13.3%
- EBITDA (LTM) $4,037,000
- EBITDA Margin: 83.5%
ECN Capital Corp. (TSX: ECN) – $4.00
Corporate Financial Services
ECN Capital Corp is a Canada-based independent commercial finance company that operates across North America in the following verticals of the commercial finance market: Rail Finance, Commercial and Vendor (C&V) Finance, and Commercial Aviation Finance. Through its C&V vertical, the Company provides financing and leasing solutions to manufacturers, dealers, distributors and end-users of capital equipment across a range of industries such as food service, transportation, construction, manufacturing, healthcare, office equipment and technology products.
- Market Cap: $1,553,998,872
- YTD Price Change: 21.2%
- EBITDA (LTM) $312,000,000
- EBITDA Margin: 81.9%
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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