The Canadian growth stocks on our list have ‘10 bagger’ potential
SmallCapPower | May 4, 2017: Today we have identified some Canadian growth stocks that have the potential to increase 10-fold in the coming months, as well as some promising REITs. The reason being that these companies have experienced high (15%-30%) EPS growth over the past three years, while trading at attractive valuations and facing scarce coverage by analysts. This means that the earnings growth of these companies has yet to be realized by the public. This provides an opportunity to invest in high-growth companies before the market realizes their true intrinsic value.
Caledonia Mining Corporation Plc (TSX: CAL) – $1.80
Gold
Caledonia Mining Corporation Plc is involved primarily in the operation of a gold mine, and the exploration and development of mineral properties for precious metals. The Company’s activities are focused on the Blanket Mine in Zimbabwe. The Zimbabwe segments include Caledonia Holdings Zimbabwe Limited and subsidiaries. The Zambia segments consist of Nama copper project and cobalt project. The South Africa segment comprises a gold mine, as well as sales made by Caledonia Mining South Africa Proprietary Limited to the Blanket Mine.
- Market Cap: $95,226,199.79
- Total Revenue (LTM): $79,329,667.00
- Debt to Equity (LTM): 5.4%
- YTD Price Change: 24.1%
- PE Multiple: 8.10x
- 3 Yr EPS CAGR: 21.4%
- # Analysts Covering: 1
Canoe EIT Income Fund (TSX: EIT.UN) – $12.00
Closed End Funds
Canoe EIT Income Fund, formerly EnerVest Diversified Income Trust, is a closed-ended investment trust. The Fund’s investment objective is to maximize monthly distributions relative to risk and maximize net asset value while maintaining and expanding a diversified investment portfolio, primarily through acquiring, investing, holding, transferring, disposing of or otherwise dealing with or in equity and debt securities of corporations, partnerships, or other issuers and such other investments. It invests in securities of publicly-traded real estate investment trusts, qualified limited partnerships, corporations and similar issuers, corporate debt, convertible debentures and preferred shares of issuers engaged in businesses in various industries and geographic regions.
- Market Cap: $1,066,456,320.00
- Total Revenue (LTM): $223,436,000.00
- Debt to Equity (LTM): 8.4%
- YTD Price Change: 0.6%
- PE Multiple: 5.76x
- 3 Yr EPS CAGR: 20.9%
- # Analysts Covering: 0
Cub Energy Inc. (TSXV: KUB) – $0.04
Oil & Gas Exploration and Production
Cub Energy Inc. is an upstream oil and gas company engaged in the exploration, development and production of petroleum and natural gas properties in Ukraine. The Company, through its subsidiary Gastek LLC (Gastek), owns approximately 30% equity interest in KUBGAS Holdings Limited (KUB Holdings) which in turn owns over 100% equity interest in KUB-Gas LLC (KUB-Gas). KUB-Gas and its subsidiary own and operate approximately six licensed gas and gas condensate fields in the Dnieper-Donetsk Basin of eastern Ukraine (over five operating under production licenses and approximately one under exploration license).
- Market Cap: $12,508,044.12
- Total Revenue (LTM): $10,717,140.00
- Debt to Equity (LTM): 31.2%
- YTD Price Change: -20.0%
- PE Multiple: 2.32x
- 3 Yr EPS CAGR: 26.2%
- # Analysts Covering: 0
Leon’s Furniture Ltd. (TSX: LNF) – $16.50
Department Stores
Leon’s Furniture Limited provides a network of home furniture, appliances and electronics, and mattress stores in Canada. The Company’s retail banners include Leon’s, The Brick, The Brick Mattress Store, The Brick Clearance Centre, United Furniture Warehouse (UFW), The Brick’s Midnorthern Appliance and Appliance Canada. It is a commercial retailer of appliances to builders, developers, hotels and property management companies. The Company’s repair service division, Trans Global Services, provides household furniture, electronics and appliance repair services to its customers.
- Market Cap: $1,190,333,232.00
- Total Revenue (LTM): $2,143,736,000.00
- Debt to Equity (LTM): 52.3%
- YTD Price Change: -8.7%
- PE Multiple: 15.77x
- 3 Yr EPS CAGR: 21.8%
- # Analysts Covering: 1
Summit Industrial Income REIT (TSX: SMU.UN) – $6.68
Commercial REITs
Summit Industrial Income REIT is a Canada-based mutual fund trust involved in the commercial leasing of real estate property with approximately 30 property locations in Ontario, approximately six properties across Western Canada, approximately 16 properties in Montreal, and one property in Atlantic Canada. The Company is focused on the light industrial sector of the Canadian real estate industry. Light industrial properties are one-storied properties located in or near cities. The properties house such activities as warehousing and storage, light assembly and shipping, call centers and technical support, professional services and other similar uses.
- Market Cap: $284,503,938.80
- Total Revenue (LTM): $44,950,000.00
- Debt to Equity (LTM): 122%
- YTD Price Change: 4.7%
- PE Multiple: 8.82x
- 3 Yr EPS CAGR: 21.4%
- # Analysts Covering: 0
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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