Signs of a good investment include a company that is operationally profitable, not heavily burdened by debt, and which is also trading at a fair multiple. The companies on our list today have not only shown an ability to generate operational return, but they also have employed a great capital structure, which allows them to borrow additional funds for expansion.
Heard of these 5 #smallcapstocks with a positive #EBITDA and trading under 5.5x #operatingincome? #investment #ideas http://t.co/3jHjuvfG0P
— Smallcappower.com (@smallcappower) July 13, 2015
Teranga Gold Corp. (TSX: TGZ) – $0.63
Gold
Teranga Gold Corporation (Teranga) is a Canada-based gold mining and production company principally engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. The Company’s Sabodala gold mine is located 650 kilometers southeast of the capital of Senegal, Dakar within the West African Birimian geological belt in Senegal and lies about 90 kilometers from gold mines in Mali.
- Market Cap: $225,066,278
- Total Revenue (LTM): $300,679,311
- EV/EBITDA: 4.6x
- Net Debt/EBITDA: 0.1x
Arsenal Energy Inc. (TSX: AEI) – $2.48
Oil & Gas Exploration and Production
Arsenal Energy Inc. (Arsenal) is an oil and gas exploration, development and production company based in Calgary, Alberta, Canada. Arsenal operates and has production in both Canada and the United States.
- Market Cap: $46,413,819
- Total Revenue (LTM): $100,707,000
- EV/EBITDA: 3.1x
- Net Debt/EBITDA: 0.8x
Rocky Mountain Dealerships Inc. (TSX: RME) – $9.00
Heavy Machinery & Vehicles
Rocky Mountain Dealerships Inc. is a Canada-based company and is a consolidator of agriculture and construction equipment dealerships. The Company focuses on around the Case IH, Case Construction and New Holland brands. Rocky Mountain Equipment operates as an independent, multi-branch equipment dealership consisting of 38 construction and agricultural equipment dealership branches located across Alberta, Saskatchewan and Manitoba. The Company’s products and services include preventative maintenance, field services, maintenance packages, general repair, post season inspections and equipment inspections.
- Market Cap: $176,986,987
- Total Revenue (LTM): $987,664,000
- EV/EBITDA: 5.0x
- Net Debt/EBITDA: 0.4x
TransGlobe Energy Corp. (TSX: TGL) – $4.59
Oil & Gas Exploration and Production
TransGlobe Energy Corporation (TransGlobe) is an oil and gas exploration and production company based in Calgary, Alberta, Canada. Its main business activities consist of the exploration, development and production of crude oil and natural gas liquids. It has exploration and production operations in the Arab Republic of Egypt (Egypt) with additional legacy non-operated assets in the Republic of Yemen (Yemen).
- Market Cap: $358,819,669
- Total Revenue (LTM): $265,696,071
- EV/EBITDA: 2.8x
- Net Debt/EBITDA: 0.0x
Lucara Diamond Corp. (TSX: LUC) – $2.04
Non-Gold Precious Metals & Minerals
Lucara Diamond Corp. is a Canada-based diamond producer. Its assets include the Karowe mine in Botswana and the Mothae project in Lesotho. The Karowe Mine is located in north-central Botswana. The Kimberlite at the Karowe Mine (the AK6 Kimberlite) comprises a single, tri-lobate Kimberlite pipe, and its sub-outcrop consists of a core of Kimberlite, covering an area of 4.2 hectares. The Mothae Diamond Project is located in the Maluti Mountains of Lesotho, approximately 150 kilometers northeast of Maseru the capital of Lesotho. The Mothae mining lease covers an area of 20 square kilometers. The project hosts a diamondiferous Kimberlite pipe with an estimated surface extent of 8.8 hectares.
- Market Cap: $764,172,880
- Total Revenue (LTM): $297,372,122
- EV/EBITDA: 3.3x
- Net Debt/EBITDA: 0.1x
