The Canadian industrial stocks on our list service U.S. auto companies and consumers
SmallCapPower | April 9, 2018: Many American automotive companies produce their parts in Canada. The Trump administration, in its plans to renegotiate NAFTA, could target automotive parts in an attempt to move manufacturing jobs to the U.S. Changes to the agreement, or the revocation of the agreement entirely, could significantly set back the Canadian industrial stocks on our list today.
Stelco Holdings Inc. (TSX:STLC) – $ 21.52
Iron & Steel
Stelco Holdings owns and operates two steel-making facilities in Ontario. The Company produces flat-rolled value-added steels, for use in the construction, automotive and energy industries. Stelco aims to expand production by optimizing operations and restarting facilities.
- Market Cap: $1,912.8 Million
- YTD Total Return: -5.6%
- Enterprise Value to EBITDA LTM: 4.9x
- Forward Enterprise Value to EBITDA FY2018: 4.5x
Martinrea International Inc. (TSX:MRE) – $15.90
Auto, Truck & Motorcycle Parts
Martinrea International is a Canada-based auto parts producer. The Company produces steel metal formed parts, aluminum components, and fluid management systems. MRE operates 44 manufacturing facilities, 35 of which are located in North America, with ~10M sq. ft. of manufacturing space and 15,000 employees.
- Market Cap: $1,379.3 Million
- YTD Total Return: -0.6%
- Enterprise Value to EBITDA LTM: 4.9x
- Forward Enterprise Value to EBITDA FY2018: 4.5x
Exco Technologies Ltd. (TSX:XTC) – $9.50
Industrial Machinery & Equipment
Exco Technologies is a Canada-based industrial company that develops dies, molds and other consumable equipment, primarily for the automotive and die cast industries. The Company’s casting and extrusion division manufactures tools and materials for use in aluminum die-casting and aluminum extrusion machines. The automotive solutions division creates automotive interior trim components.
- Market Cap: $402.0 Million
- YTD Total Return: -5.5%
- Enterprise Value to EBITDA LTM: 5.3x
- Forward Enterprise Value to EBITDA FY2018: 5.4x
Uni-Select Inc. (TSX:UNS) – $20.62
Auto, Truck & Motorcycle Parts
Uni-Select is a Canada-based auto parts distributor operating in North America and the U.K. The Company provides its customers access to over 2M replacement parts and 30,000 paint products. UNS aims to acquire small auto companies, increasing its network of stores by 188 in 2017.
- Market Cap: $871.7 Million
- YTD Total Return: -27.1%
- Enterprise Value to EBITDA LTM: 9.4x
- Forward Enterprise Value to EBITDA FY2018: 8.1x
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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