10 Canadian Stocks with High Free Cash Flows: Investment Idea of the Day

Published:

Ubika Research has picked ten Canadian stocks across sectors which have generated high free cash flows and reported significant revenue growth during their latest reported quarter. Moreover, these stocks have Free Cash Flow (FCF) to Sales ratio of more than 10% with attractive free cash flow yields. We note that these stocks are trading at price to cash flow ratio (P/CF) of less than 14. Additionally, these stocks have recorded gains during the past three months with daily average traded volume above 100,000.

Company Name

Exchange

Ticker

Industry

Market Cap
(C$MM)

Last Price

Average Volume
(3-Month)

Price Change
(3-Month)

Sales Growth

Free Cash Flow (MN)

FCF to Total Sales

Free Cash Flow Yield

Price to Free Cash Flow

Dividend Yield

Longview Oil Corp

TSX

LNV

Energy

260.6

5.55

501,343

14.9%

28.2%

10.8

31.2%

10.9%

9.2

9.3%

Leisureworld Senior Care Corp

TSX

LW

Healthcare

441.4

12.18

102,702

7.2%

16.7%

14.4

14.5%

14.4%

7.0

8.5%

Enbridge Income Fund Holdings Inc

TSX

ENF

Utilities

1,456.9

25.79

102,076

8.9%

10.6%

42.9

41.4%

13.8%

7.3

5.6%

Davis + Henderson Corp

TSX

DH

Printing-Commercial

2,510.2

31.09

336,101

5.4%

38.4%

47.7

18.4%

9.6%

10.5

4.8%

Centerra Gold Inc

TSX

CG

Basic Materials

1,182.0

5.00

1,013,689

19.6%

27.3%

273.6

58.3%

18.2%

5.5

3.9%

Stantec Inc

TSX

STN

Consulting Services

3,162.9

67.85

191,547

2.2%

15.5%

110.3

24.4%

7.2%

13.9

1.0%

Linamar Corp

TSX

LNR

Industrial

3,165.7

48.87

186,133

13.6%

22.4%

186.6

20.1%

11.8%

8.4

0.7%

Canam Group Inc

TSX

CAM

Basic Materials

610.1

14.50

228,348

8.4%

18.1%

31.6

11.2%

13.9%

7.2

Lucara Diamond Corp

TSX

LUC

Basic Materials

667.1

1.77

620,377

1.1%

101.2%

18.0

30.6%

15.1%

6.6

Copper Mountain Mining Corp

TSX

CUM

Basic Materials

248.9

2.14

1,583,868

27.4%

29.2%

13.2

20.3%

18.0%

5.6

Source: Bloomberg
Note: All the figures are as of latest reported quarter

Company Description:

Longview Oil Corp (TSX: LNV)
Longview Oil Corporation operates long life crude oil and natural gas properties. The company conducts low-risk drilling, recompletion and enhanced oil recovery activities. Longview Oil focuses on oil development opportunities in Central Alberta and Southeast Saskatchewan.

Leisureworld Senior Care Corp (TSX: LW)
Leisureworld Senior Care Corporation provides licensed long-term care for the elderly in nursing homes, retirement homes, and independent living facilities.The company also provides nurses, healthcare aides, and personal home support workers in patient’s homes throughout Ontario, Canada.

Enbridge Income Fund Holdings Inc (TSX: ENF)
Enbridge Income Fund Holdings Inc. operates as a holding company. The company, through its Fund entity, invests in a diversified portfolio of energy infrastructure assets in Canada.

Davis + Henderson Corp (TSX: DH)
Davis + Henderson Corporation offers technology and technology based services to financial institutions in North America. The company’s services include lending technology, loan and credit card services, securitized lending services, cheque programs and other business process outsourcing.

Centerra Gold Inc (TSX: CG)
Centerra Gold Inc, acquires, explores, develops, and operates gold properties primarily in Central Asia, the former Soviet Union, and other emerging markets. The company currently operates the Kumtor mine in the Kyrgyz Republic and the Boroo mine in Mongolia.

Stantec Inc (TSX: STN)
Stantec Inc. is an engineering, architecture, and related professional services enterprise. The company provides a broad range of consulting, project delivery, design build, and technology capabilities to private and public sector clients, across North America and internationally.

Linamar Corp (TSX: LNR)
Linamar Corporation manufactures precision machine components, assemblies, and castings primarily for the automotive industry. The company also sells to the defense and aerospace industries. Linamar manufactures engines, transmissions, drivelines, steering, suspension components, and brake components.

Canam Group Inc (TSX: CAM)
Canam Group Inc. is an industrial company that designs and fabricates construction products and solutions. The company’s products are marketed by several business units in the commercial, industrial, and residential markets. Canam has operations in Canada, the United States, Mexico, Romania, and India.

Lucara Diamond Corp (TSX: LUC)
Lucara Diamond Corporation is a diamond mining company. The company owns interests in diamond projects in Lesotho, Africa.

Copper Mountain Mining Corp (TSX: CUM)
Copper Mountain Mining Corporation explores for and develops mineral properties. The company’s main interest is a copper mining project.

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