The Canadian stocks we’ve identified have had average annualized EPS and cash flow growth of 33.5% per year over the past five years
SmallCapPower | April 11, 2022: Net-income and cash-flow growth give investors a good snapshot of how efficiently companies have managed their operations and can grow their profits. Investors typically prefer stocks with higher net-income and cash flow growth rates, as they’re better suited for paying dividends or buying back shares, both of which increase the return investors receive. The four Canadian stocks we have discovered have remained resilient, even in these volatile market conditions. All four stocks have recorded EPS and cash flow growth rates of at least 30% over the past five years.
*Share price data and other metrics as of April 8, 2022
Canfor Corporation (TSX:CFP) – $22.75
Forestry Products
Canfor is a softwood lumber company that also owns around half of Canfor Pulp. It is active throughout North America, with lumber mills in British Columbia, Alberta, and the southeastern United States. It has two reportable segments: Lumber and Pulp and Paper. The Lumber segment includes Canfor’s sawmilling and remanufacturing operations and the Pulp and Paper segment includes the kraft pulp, kraft paper, and BCTMP businesses of CPPI.
- Market Cap: $2,925.6M
- 7-Day Return: -13.1%
- 30-Day Return: -13.6%
- 30-Day Average Trading Volume: 397,735
- 5 Year EPS Growth Rate: 101%%
- 5 Year Cash Flow Growth Rate: 72.2%
goeasy Ltd. (TSX:GSY) – $125.06
Financial Services
goeasy provides financial services to own furniture, electronics, computers, and appliances. It offers merchandise leasing of household furnishings, appliances, and home electronic products to consumers under weekly or monthly leasing agreements. The Company also offers unsecured installment loans to consumers. Its reportable business segments include easyhome and easyfinancial, of which it derives maximum revenue from easyfinancial segment.
- Market Cap: $2,029.4M
- 7-Day Return: -10.2%
- 30-Day Return: +1.6%
- 30-Day Average Trading Volume: 92,152
- 5 Year EPS Growth Rate: +50.6%
- 5 Year Cash Flow Growth Rate: +61.7%
BRP Inc. (TSX:DOO) – $104.84
Manufacturing
BRP designs, develops, manufactures, distributes, and markets snowmobiles, all-terrain vehicles, and personal watercraft under the Ski-Doo, Sea-Doo, Can-Am, and Lynx brand names. It also builds engines under the Rotax brand (after discontinuing the Evinrude outboard engine business in 2020) and offers clothing, parts, and accessories that cater to its core consumers. In 2018, BRP created a marine group, acquiring boat manufacturers Alumacraft, Triton (which makes Manitou pontoon boats), and Telwater (in Australia). At the end of fiscal 2022, the Company marketed its products through a network of more than 2,800 independent dealers and 170 distributors in about 120 countries.
- Market Cap: $8,356.9M
- 7-Day Return: -0.1%
- 30-Day Return: +27.4%
- 30-Day Average Trading Volume: 296,134
- 5 Year EPS Growth Rate: +49.1%
- 5 Year Cash Flow Growth Rate: +36.2%
Westaim Corp. (TSXV:WED) – $2.37
Financial Services
Westaim is a Canada-based investment company, engaged in providing long-term capital to businesses operating primarily within the global financial services industry. It invests, directly and indirectly, through acquisitions, joint ventures, and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation. The group seeks to acquire debt, equity, or derivative securities of both public and private companies. The Company derives revenue mostly from interest income and dividend income. Geographically, Westaim has a business presence in the US, Asia Pacific, Canada, Europe and other countries.
- Market Cap: $346.6M
- 7-Day Return: +3.0%
- 30-Day Return: +10.0%
- 30-Day Average Trading Volume: 68,003
- 5 Year EPS Growth Rate: +65.5%
- 5 Year Cash Flow Growth Rate: +37%
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