The Canadian stocks we’ve discovered have superior free cash flow yields
SmallCapPower | July 16, 2019: When it comes to business, cash is king. The ability to generate cash is critical if a company wants to pursue opportunities that enhance shareholder value. A good metric to measure a company’s ability to generate cash is free cash flow yield. This metric divides a company’s free cash flow by its market cap. Today we have sifted through and found some of the best free cash flow generating Canadian stocks.
*Share prices as at close Friday, July 12, 2019, data obtained from S&P Capital IQ
Medicure Inc. (TSXV:MPH) – $4.70
Biotechnology
Medicure is a pharmaceutical company focused on the development and commercialization of cardiovascular therapeutics for the U.S. market. The Company’s most successful product is Aggrastat, a tirofiban hydrochloride injection that has demonstrated results of a 41% reduction in death in high-risk cardiovascular patients.
- Market Cap: $70.1M
- YTD Return: -23%
- Average 90 Day Trading Volume: 10,000
- Free Cash Flow Yield: 91%
Thunderbird Entertainment Group Inc. (TSXV:TBRD) – $1.20
Movies and Entertainment
Thunderbird Entertainment is a content production studio that has created an array of award-winning content. The Company’s projects include Highway Thru Hell, Blade Runner 2049, Kim’s Convenience, Beat Bugs, and Last Kids on Earth. On June 5, Thunderbird Entertainment Group Inc announced the launch of a worldwide production venture that will be based in the United Kingdom.
- Market Cap: $56M
- YTD Return: -22.6%
- Average 90 Day Trading Volume: 20,000
- Free Cash Flow Yield: 39%
Molson Coors Canada Inc. (TSX:TPX.B) – $74.58
Brewers
Molson Coors Canada brews, markets, sells, and distributes various beer brands in Canada. Some of the Company’s notable brands include Blue Moon, Coors Banquet, Coors Light, Miller Genuine Draft, Miller Lite, Molson Canadian, and Creemore Springs. Molson Coors Canada sells its products to bars, restaurants, convenience stores, grocery stores, and liquor stores.
- Market Cap: $16.1B
- YTD Return: -4.8%
- Average 90 Day Trading Volume: 1,560,000
- Free Cash Flow Yield: 28%
Titanium Transportation Group Inc. (TSXV:TTR) – $1.36
Trucking
Titanium Transportation Group is an asset-based transportation and logistics company servicing Canada and the United States. It provides truckload, dedicated, and cross-border trucking services, freight logistics, and warehousing & distribution. TTR serves customers across various industries, including multinational corporations.
- Market Cap: $49.8M
- YTD Return: 0%
- Average 90 Day Trading Volume: 30,000
- Free Cash Flow Yield: 21%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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