The TSX-listed Canadian small cap stocks we’ve identified have seen average earnings per share (EPS) growth of 75% per year over the past three years
SmallCapPower | February 19, 2020: Earnings per share is a key driver of stock prices. It is generally considered to be the single most important variable in determining the market value of a stock. EPS is carefully watched by investors and stock market traders. This is because stocks with steady EPS growth typically see share-price appreciation and pay dividends. The higher the earnings per share of a company, the better its profitability. Today we have uncovered four Canadian small cap stocks across all sectors that have registered the highest earnings per share growth over the past three years.
*Share prices as at February 13, 2020, data obtained from S&P Capital IQ
Cargojet Inc. (TSX:CJT) – $122.21
Airlines – Freight
Cargojet is Canada’s leading provider of time-sensitive overnight air cargo services and carries over 1,300,000 pounds of cargo each business night. CJT’s air cargo business activities include the operation of domestic overnight air cargo co-load network between 14 cities in Canada, as well as provisions of dedicated aircraft to customers. CJT also operates scheduled international routes for various cargo customers between the U.S. and Bermuda, between Canada and Germany, and between Canada, Columbia, and Peru. Cargojet pays a quarterly dividend of $0.91, implying a 2.9% annual dividend yield.
- Market Cap: $1,638.0M
- YTD-Return: +17.1%
- 3-Year Return: +158.3%
- 90-Day Average Trading Volume: 39,960
- 3-Year EPS CAGR: +109.2%
Sienna Senior Living Inc. (TSX:SIA) – $19.43
Retirement Facilities
Sienna Senior Living provides a variety of retirement housing options, including independent and assisted living. Sienna also provides long-term care (LTC) services in Canada. Its LTC services include memory care, long-term care, and specialized programs & services. As of December 31, 2019, SIA owned and operated a total of 70 seniors’ living residences comprising 27 retirement residences, 35 LTC residences, and 8 seniors’ living residences. Sienna Senior Living pays a quarterly dividend of $0.23, implying a 4.7% annual dividend yield.
- Market Cap: $1,298.7M
- YTD-Return: +6.5%
- 3-Year Return: +9.0%
- 90-Day Average Trading Volume: 156,060
- 3-Year EPS CAGR: +77.5%
Points International Ltd. (TSX:PTS) – $24.00
Loyalty Programs
Points International provides e-commerce and technology services to loyalty program operators in the United States, Europe, and globally. It operates through three segments: Loyalty Currency Retailing, Platform Partners, and Points Travel. The Loyalty Currency Retailing segment provides products and services designed to help loyalty program members unlock the value of their loyalty currency and accelerate the time to a reward. The Platform Partners segment offers various applications that are connected to, and enabled by, the functionality of the loyalty commerce. The Points Travel segment provides online travel bookings, including Points Travel and PointsHound services.
- Market Cap: $313.0M
- YTD-Return: +22.5%
- 3-Year Return: +140.6%
- 90-Day Average Trading Volume: 2,770
- 3-Year EPS CAGR: +60.1%
Wesdome Gold Mines Ltd. (TSX:WDO) – $9.29
Gold Mining
Wesdome Gold Mines explores for, extracts, processes, reclaims, and sells gold in Canada. It principally produces gold in the form of doré bars, and silver as a by-product. WDO boasts over 30 years of continuous gold production and the Company’s principal assets include the Eagle River Mine, which consists of three contiguous mining leases and 442 contiguous active mining claims covering an area of 7,958 hectares; the Mishi Mine that consists of 19 patented mining claims, five mining leases, and five staked claims covering an area of 3,055 hectares; and the Eagle River Mill located near Wawa.
- Market Cap: $1,281.9M
- YTD-Return: -7.4%
- 3-Year Return: +149.3%
- 90-Day Average Trading Volume: 979,640
- 3-Year EPS CAGR: +57.0%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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