The Canadian value stocks on our list are considered inexpensive on a book value and sales multiple basis
SmallCapPower | May 12, 2021: Value stocks are more likely to be found on a 52-week low list but some, on rare occasions, will be making new highs and still be considered inexpensive on a book value and sales multiple basis. Today, we have discovered three Canadian value stocks that have hit new yearly highs recently but aren’t considered pricey.
*Share prices and other metrics as of May 11, 2021
Magna International Inc. (TSX:MG) – $113.02
Magna International is one of the world’s largest supplier of automotive components. Its global network includes 347 manufacturing operations and 84 product development, engineering and sales centres spanning 28 countries. The Company has formed a joint venture with LG Electronics to create more electronic components for electric vehicles. Despite surging more than 128% over the past year, Magna stock trades at 2.4 times book value and 0.8 times sales.
- Year-to-date return: 26%
Canadian Utilities Limited (TSX:CU) – $34.84
Canadian Utilities is a diversified global energy infrastructure company delivering essential services and innovative business solutions in Utilities (electricity and natural gas transmission and distribution, and international electricity operations); Energy Infrastructure (electricity generation, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales). CU has assets of $20 billion. Its shares trade at 2.9 times sales and 1.8 times book value with a current dividend yield of 5%.
- Year-to-date return: 14%
Great-West Lifeco Inc. (TSX:GWO) – $36.51
Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Great-West operates in Canada, the United States and Europe under the brands Canada Life, Empower Retirement, Putnam Investments, and Irish Life. Great-West Lifeco and its companies have approximately $2 .1 trillion in consolidated assets under administration as of March 31, 2021. Shares of Great-West trade at just 0.5 times sales and 1.6 times book value with a current dividend yield of 4.8%.
- Year-to-date return: 22%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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