The TSX value stocks on our list also have low D/E and EV/Sales multiples
SmallCapPower | February 1, 2017: Today we have identified five TSX value stocks with EV/Sales and D/E multiples of less than 0.5x. Enterprise Value to Sales (EV/Sales) is a financial ratio that compares the total value of the company to its sales. Debt to Equity (D/E) is a debt ratio used to measure a company’s financial leverage by dividing its total liabilities by its shareholders’ equity.
Stuart Olson Inc. (TSX: SOX) – $5.33
Construction & Engineering
Stuart Olson Inc. is a Canada-based construction and industrial services company. Its segments include General Contracting, Commercial Systems, Industrial Services, and Corporate and Other. The General Contracting segment, through the Buildings Group, provides general contracting services, including integrated project delivery, construction management and design-build services. The Commercial Systems segment includes Canem, which designs, builds, maintains and services critical building systems, including electrical and life safety systems, voice, data and communications networks, and security infrastructure. The Industrial Services segment offers various industrial construction and maintenance services.
- Market Cap: $143 million
- Enterprise Value To Sales: 0.25x
- Total Debt to Total Equity (FY0): 54.0%
- Revenue Growth (Next Yr/This Yr): 11.4%
GoldMoney Inc. (TSX: XAU) – $3.25
GoldMoney Inc., formerly BitGold Inc., is a financial technology company. It operates a global, full-reserve and gold-based financial services group. It provides financial services as a limited third-party, combining the attributes of gold with technology. It operates through two segments: GoldMoney and BitGold. Through BitGold, it operates a self-directed gold savings platform and a gold payments network allowing individuals and businesses to make purchases or sales of gold, receive online payments, or transact with online merchants. Through GoldMoney Wealth, it offers precious metals custody and wealth services, trading and execution, card services, tax-free retirement accounts and independent research to high net worth individual investors and institutions.
- Market Cap: $225 million
- Enterprise Value To Sales : 0.38x
- Total Debt to Total Equity (FY0): 0.0%
- Revenue Growth (Next Yr/This Yr): 76.1%
Baylin Technologies Inc. (TSX: BYL) – $2.08
Communications & Networking
Baylin Technologies Inc. is a provider of wireless antenna solutions. The Company is engaged in designing, manufacturing and supplying antennas. The Company and its subsidiaries operate in the field of research, development, manufacture and sales of a range of antennas and communications solutions for the mobile, networking and wireless infrastructure markets, primarily in the Far East and North America. It designs and manufactures antennas for mobile devices, wireless networking devices and wireless infrastructure. Its product offering for the mobile devices are mainly embedded antennas for use in handsets, tablets and other mobile devices.
- Market Cap: $45 million
- Enterprise Value To Sales: 0.45x
- Total Debt to Total Equity (FY0): 21.1%
- Revenue Growth (Next Yr/This Yr): 14.6%
TransGlobe Energy Corp. (TSX: TGL) – $2.18
Oil & Gas Exploration and Production
TransGlobe Energy Corporation is an oil exploration and production company. Its activities are concentrated in the Arab Republic of Egypt (Egypt). The Company is engaged primarily in oil exploration, development, production and the acquisition of properties. It holds interests in various production sharing concessions (PSC) in Eastern Desert Egypt and Western Desert Egypt. Its blocks in Eastern Desert Egypt include West Gharib, which covers approximately 34,860 acres; West Bakr, covering over 11,600 acres; North West (NW) Gharib, covering approximately 162,000 acres; South East (SE) Gharib, which covers over 125,650 acres, and South West (SW) Gharib, covering approximately 48,310 acres.
- Market Cap: $157 million
- Enterprise Value To Sales: 0.63x
- Total Debt to Total Equity (FY0): 17.2%
- Revenue Growth (Next Yr/This Yr): 137.6%
Innova Gaming Group Inc. (TSX: IGG) – $1.40
Casinos & Gaming
Innova Gaming Group Inc., through its subsidiary, Diamond Game Enterprises designs, develops, produces, markets, and services games, systems and tickets for the North American gaming industry, predominantly in the business to government (B2G) lottery sector. Its primary product is Lucky Tab machine (LT-3), an extended play instant ticket vending machine (ITVM) that dispenses tickets while simultaneously displaying the results of each ticket on a video monitor in an entertaining fashion. It also develops alternative gaming products machines, such as Class II bingo, skill games and tribal donation games.
- Market Cap: $28 million
- Enterprise Value To Sales: 0.64x
- Total Debt to Total Equity (FY0): 14.2%
- Revenue Growth (Next Yr/This Yr): 12.6%