A proposed $54 billion military spending hike south of the border could send the Canadian defense stocks on our list soaring
SmallCapPower | May 16, 2017: Donald Trump recently proposed a $54 billion defense-spending hike in an effort to protect U.S. citizens from increasing global threats and combat ISIS. That represents a 10% increase from last year and would push America’s defense budget to over $650 billion, bigger than most other countries combined. The five Canadian defense stocks on our list all have exposure to the United States, and would certainly benefit from an increase in its defense budget.
FLYHT Aerospace Solutions Ltd. (TSXV: FLY) – $0.23
Aerospace & Defense
FLYHT Aerospace Solutions Ltd. is a Canada-based designer and developer of products and software for, and a service provider to, the aerospace industry. It supports aviation customers in different sectors, including commercial, business, leasing and military operators. It provides aircraft intelligence and cockpit communications for the aerospace industry. Its tools deliver on-demand data and voice communication between the aircraft and operations groups on the ground. Its technology, the Automated Flight Information Reporting System (AFIRS), operates on multiple aircraft types and provides functions, such as safety services voice and text messaging, data collection and transmission, as well as on-demand streaming of flight data recorder (black box), engine and airframe data.
- Market Cap: $46,376,545
- Total Revenue (LTM): $14,331,190
- Debt to equity: 58.0%
- YTD Price Change: 2.2%
Firan Technology Group Corp (TSX: FTG) – $4.30
Aerospace & Defense
Firan Technology Group Corporation (FTG) is a supplier of aerospace and defense electronic products and subsystems. The Company operates through two segments: FTG Circuits and FTG Aerospace. The FTG Circuits is a manufacturer of technology printed circuit boards. Its product offering includes engineering services, Microvia technology, buried capacitance, cavity boards, metal core constructions, multiple sequential laminations, differential and controlled impedance, embedded filters and inductors, buried resistor layers, back drilling and back planes. It serves customers in aviation, defense and other technology industries. FTG Aerospace designs and manufactures illuminated cockpit panels, keyboards, bezels, subassemblies and assemblies for original equipment manufacturers of avionics products, as well as for airframe manufacturers.
- Market Cap: $96,976,131
- Total Revenue (LTM): $87,114,000
- Debt to equity: 38.7%
- YTD Price Change: 11.7%
Heroux Devtek Inc. (TSX: HRX) – $12.75
Aerospace & Defense
Heroux Devtek Inc. is a Canada-based company engaged in the design, development, manufacture, repair and overhaul of landing gear and actuation systems and components for the aerospace market. It manufactures electronic enclosures, heat exchangers and cabinets for airborne radar, electro-optic systems and aircraft controls through its Magtron operations, as well as fluid filters products through its Bolton operations. In the commercial sector, it operates in commercial and business jet, regional aircraft and helicopter markets. On the defense side, it provides parts and services for military aircraft in the United States and Europe.
- Market Cap: $460,614,545
- Total Revenue (LTM): $406,812,000
- Debt to equity: 44.2%
- YTD Price Change: -13.3%
Magellan Aerospace Corp. (TSX: MAL) – $21.06
Aerospace & Defense
Magellan Aerospace Corporation is a Canada-based supplier of components to the aerospace industry and in certain applications for power generation projects. The Company engineers and manufactures aeroengine and aerostructure components for aerospace markets, including products for defense and space markets, and complementary specialty products. Its segments include Aerospace and Power Generation Project. The Aerospace segment includes the design, development, manufacture, repair and overhaul, and sale of systems and components for defense and commercial aviation. The Power Generation Project segment includes the supply of gas turbine power generation units.
- Market Cap: $1,225,881,561
- Total Revenue (LTM): 1,003,843,000
- Debt to equity: 25.1%
- YTD Price Change: 17.1%
Norsat International Inc. (TSX: NII) – $14.18
Aerospace & Defense
Norsat International Inc. is a provider of communication solutions used by government organizations, militaries, transportation, resource and marine industry companies, news organizations, public safety search and rescue operators, and others. The Company operates through two segments: Sinclair Technologies and Satellite Communications. The Sinclair Technologies segment specializes in radio frequency (RF) antenna and filter products. The Satellite Communications segment provides over two categories of products: satellite terminals and microwave components. The Company’s solutions enable the transmission of data, audio and video for remote applications.
- Market Cap: $83,014,824
- Total Revenue (LTM): $51,089,277
- Debt to equity: 0.0%
- YTD Price Change: 33.4%
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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