4 TSX Stocks with 40%+ Expected ROE Growth

Earnings results could provide major upside momentum for the TSX stocks on our list

SmallCapPower | January 30, 2017: Return on Equity (ROE) is a measure of profitability that calculates the dollar amount of profit a company generates per dollar of shareholders’ equity (net income/shareholders’ equity). The TSX stocks on our list have earnings reports due in a couple of weeks and analysts expect 40%+ increases Y/Y in ROE for each.

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First National Financial Corp. (TSX: FN) – $28.97
Corporate Financial Services

First National Financial Corporation is a Canada-based parent company of First National Financial LP (FNFLP), which is an originator, underwriter and servicer of prime residential (single-family and multi-unit) and commercial mortgages. The Company operates through two segments: Residential (which includes single-family residential mortgages) and Commercial (which includes multi-unit residential and commercial mortgages).

  • Market Cap: $1,737 million
  • Total Revenue (LTM): $1,009 million
  • Expected Report Date (FQ1): 21/02/2017
  • Return On Equity – Mean (FY1): 49.2%

Chorus Aviation Inc. (TSX: CHR) – $7.30
Airlines

Chorus Aviation Inc. is a holding company for various aviation interests, including Jazz Aviation LP (Jazz) and Voyageur Aviation Corp. (Voyageur). Jazz operates the regional airline. Through Jazz’s operations, the Company provides part of Air Canada’s domestic and transborder regional network to approximately 60 destinations in Canada and over 10 destinations in the United States.

  • Market Cap: $892 million
  • Total Revenue (LTM): $1,319 million
  • Expected Report Date (FQ1): 17/02/2017
  • Return On Equity – Mean (FY1): 47.0%

Gluskin Sheff + Associates Inc. (TSX: GS) – $18.52
Investment Management & Fund Operators

Gluskin Sheff + Associates Inc. is a wealth management company serving high net worth private clients and institutional investors. The Company provides discretionary investment management services. It provides private client services to high net worth investors, including entrepreneurs, family trusts, private charitable foundations and estates. The Company separates the management of its portfolio models from the provision of advice to clients on their individual asset mix needs. Its portfolio models encompass a range of investment strategies and include long-only equity, credit alternative and fixed income. It offers various portfolio models that invest in equities and equity-related securities.

  • Market Cap: $578 million
  • Total Revenue (LTM): $141 million
  • Expected Report Date (FQ1): 13/02/2017
  • Return On Equity – Mean (FY1): 44.7%

Lucara Diamond Corp. (TSX: LUC) – $3.06
Non-Gold Precious Metals & Minerals

Lucara Diamond Corp. is a diamond mining company focused on Africa. The Company’s business consists of the acquisition, exploration, development and operation of diamond properties. Its primary segments are based on individual diamond properties, being the Karowe Mine and Corporate. The principal assets of the Company and the focus of the Company’s operations, development and exploration activities reside in Botswana. Its land holdings include Karowe Diamond License, Prospecting License No. 371/2014 and Prospecting License No. 367/2014.

  • Market Cap: $1,171 million
  • Total Revenue (LTM): $388 million
  • Expected Report Date (FQ1): 21/02/2017
  • Return On Equity – Mean (FY1): 40.8%