A 15% drop in the US Dollar negatively impacts Canadian firms with exposure to the United States
SmallCapPower | May 3, 2016: A falling US Dollar has a positive impact on the CAD/USD exchange rate. Therefore, the boost in the Canadian Dollar may seem as a positive for Canadian investors. However, a stronger Canuck buck fundamentally makes exports into the US cost more, which will likely hurt the canadian stocks on our list.
CGI Group (TSE:GIB.A) – $57.34
IT Services & Consulting
CGI Group Inc. provides information technology and business process services. The Company offers business intelligence and transformation, change management, cyber security, CIO advisory, digital enterprise, project management, and industry-specific business consulting services; and business intelligence, data management, enterprise application integration, enterprise architecture and content management, enterprise resource planning (ERP), and geospatial solutions.
Percent of Sales from the US: 27%
Revenues (LTM, mm): $10,578
Alimentation Couche-Tard (TSE:ATD.B) – $55.50
Food Retail & Distribution
Alimentation Couche-Tard Inc. is a convenience store company that operates convenience stores in the United States, Europe and Canada. It is involved in the sale of goods for immediate consumption, road transportation fuel and other products through corporate stores and franchise operations. It operates convenience store and road transportation fuel retailing chain through brands, including Circle K, Statoil, Kangaroo Express, Couche-Tard and Mac’s. Its network consists of approximately 8,006 convenience stores across North America, including over 6,579 stores offering road transportation fuel.
Percent of Sales from the US: 69%
Revenues (LTM, mm): $44,123
Magna International (TSE:MG) – $52.79
Auto, Truck & Motorcycle Parts
Magna International Inc. (Magna) is an automotive supplier. Its segments are North America, Europe, Asia, Rest of World, and Corporate and Other. Its product capabilities include producing body, chassis, exterior, seating, powertrain, electronic, vision, closure, and roof systems and modules, as well as vehicle engineering and contract manufacturing.
Percent of Sales from the US: 28%
Revenues (LTM, mm): $41,085