The Canadian financial stocks on our list have generated the highest earnings per share (EPS) growth over five years
SmallCapPower | November 1, 2017: Continued EPS growth over the long term is usually a good indicator of sustainable growth. The Canadian financial stocks we have identified today have posted an average EPS growth of 38% over the past five years. Furthermore, the stocks have returned 7% YTD on average, with Tricon Capital leading the way, up 16% and Alaris Royalty was the only stock that fell, down 9% YTD.
Tricon Capital Group Inc. (TSX:TCN) – $10.76
Real Estate Services
Tricon Capital Group Inc is a Canada-based investing and asset management company focused on the real estate sector in North America. The company owns, or on behalf of investors, manages several real estate investments in rental apartments, single family homes and housing communities. Tricon had $5.9 billion in assets under management as of June 30, 2017.
- Market Cap: $1,444 Million
- 5 YR EPS Growth: 89.6%
- P/E (LTM): 13.14x
- YTD Total Return: 15.8%
First National Financial Corp. (TSX:FN) – $28.56
Corporate Financial Services
First National Financial Corp is the parent company of First National Financial LP, Canada’s largest non-bank lender. The Company operates an investment fund, whereby it engages in providing commercial and residential mortgages. As of June 30, 2017, the Company had ~$100 billion in mortgages under administration.
- Market Cap: $1,713 Million
- 5 YR EPS Growth: 21.7%
- P/E (LTM): 10.39x
- YTD Total Return: 12.3%
Alaris Royalty Corp. (TSX:AD) – $20.54
Investment Management & Fund Operators
Alaris Royalty Corp is a Calgary-based company that services a niche in the financial markets by providing innovative equity financing solutions to private businesses across North America. Alaris makes minority investments in a number of businesses and generates revenues primarily through dividend distributions. Since its inception, Alaris has contributed over $890 million in equity to private businesses since its inception in 2004.
- Market Cap: $749 Million
- 5 YR EPS Growth: 21.6%
- P/E (LTM): 12.15x
- YTD Total Return: – 8.7%
Gluskin Sheff + Associates Inc (TSX:GS) – $16.31
Investment Management & Fund Operators
Founded in 1984, Gluskin Sheff + Associates is a Canada-based wealth management firm that services high net worth private clients and institutional investors across North America. As at September 30, 2017, the Company had $8.9 billion in assets under management, ~86% of which comprised high net worth clients.
- Market Cap: $509 Million
- 5 YR EPS Growth: 18.1%
- P/E (LTM): 11.33x
- YTD Total Return: 7.1%
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own units in any of the companies mentioned above.
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