The Canadian resource stocks we’ve discovered have had EPS growth of at least 25% over the past five years as well as attractive fundamentals for long-term investments
SmallCapPower | August 15, 2022: Earnings per share (EPS) is calculated by taking total earnings and dividing it by the number of outstanding shares. Increases in earnings can be seen as a positive sign that a business is healthy and growing. However, earnings can also be increased by reducing costs which, although make a company more efficient, is not sustainable and does nothing to develop the business. Typically, stocks with the highest increases in earnings will see the highest increases in share price. The companies we have identified have seen earnings growth of more than 25% over the past five years and have attractive fundamentals for long-term investments.
*Share price data and other metrics as of August 12, 2022
Nutrien Ltd. (TSX:NTR) – $117.91
Potash Mining
Created in 2018 as a result of the merger between PotashCorp and Agrium, Nutrien is the world’s largest fertilizer producer by capacity. Nutrien produces the three main crop nutrients–nitrogen, potash, and phosphate—although its main focus is potash, where it is the global leader in installed capacity with roughly 20% share. The Company is also the largest agricultural retailer in the United States, selling fertilizers, crop chemicals, seeds, and services directly to farm customers through its brick-and-mortar stores and online platforms.
- Market Cap: $63,544.8M
- 7-Day Return: +12.8%
- 30-Day Return: +23.3%
- 30-Day Average Trading Volume: 2,551,935
- Operating Margin: 27.2%
- Debt/Equity: 0.44
- 5-Year Earnings Growth: 42.0%
West Fraser Timber Co. Ltd. (TSX:WFG) – $121.66
Lumber and Wood Products
West Fraser Timber is a diversified wood products company with more than 60 facilities in Canada, the United States, the United Kingdom, and Europe. The Company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), pulp, newsprint, wood chips, other residuals, and renewable energy. West Fraser’s products are used in home construction, repair and remodeling, industrial applications, papers, tissue, and box materials.
- Market Cap: $10,255.4M
- 7-Day Return: +5.5%
- 30-Day Return: +14.5%
- 30-Day Average Trading Volume: 468,532
- Operating Margin: 33.7%
- Debt/Equity: 0.06
- 5-Year Earnings Growth: 56.0%
Teck Resources Ltd Class B (TSX:TECK.B) – $43.86
Mining
Teck is a diversified miner with coal, copper, zinc, and oil sands operations in Canada, the United States, Chile, and Peru. Metallurgical coal is Teck’s primary commodity in terms of EBITDA contribution, closely followed by copper, with zinc and oil sands contributing smaller amounts to earnings. Teck ranks as the world’s second-largest exporter of seaborne metallurgical coal and is a top-three zinc miner. It is building a major new copper mine in Chile at the majority-owned Quebrada Blanca 2, in partnership with Sumitomo, which will increase Teck’s attributable copper production by around 80%. Along with a number of additional copper growth options, Teck’s strategy is to rebalance its portfolio to low carbon metals such as copper.
- Market Cap: $18,535.6M
- 7-Day Return: +22.5%
- 30-Day Return: +26.0%
- 30-Day Average Trading Volume: 5,545,186
- Operating Margin: 45.7%
- Debt/Equity: 0.36
- 5-Year Earnings Growth: 24.0%
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