The Canadian industrial stocks on our list have some of the strongest Y/Y revenue growth within their sector
SmallCapPower | September 10, 2018: Today we have identified four Canadian industrial stocks with revenue growth ranked in the top percentile in their sector. All the companies profiled have year-over-year revenue growth that exceeds 22%.
Savaria Corp. (TSX:SIS) – $20.49
Heavy Electrical Equipment
Savaria is a Canada-based company manufacturing a range of accessibility lifts, wheelchair accessible vans, as well as elevators for both residential and commercial use. The Company’s products are designed around increasing user mobility and adding convenience. The Company sells its products through a network of authorized dealers across the U.S., Canada, China, and Australia. In addition to the strong revenue growth, the Company pays a dividend, and reported 50.6% growth in adjusted EBITDA on a y/y basis. On Sept 4, 2018, the Company completed its $100M acquisition of Garaventa Lift, expanding its global footprint.
- Market Cap: $918.7 Million
- Y/Y Revenue Growth: 59.6%
- Y/Y Revenue Growth – Sector Percentile: 98%
Horizon North Logistics Inc. (TSX:HNL) – $2.40
Construction and Engineering
Horizon North Logistics provides a range of construction and engineering services to industrial, residential, and commercial clients. The Company’s Industrial division supplies workforce accommodations, maintenance, and utilities services. Meanwhile, the Modular Construction division provides building solutions for offices, hotels, and select residential structures. The Company currently operates in Canada and Alaska.
- Market Cap: $394.2 Million
- Y/Y Revenue Growth: 22.3%
- Y/Y Revenue Growth – Sector Percentile: 84%
Titanium Transportation Group Inc. (TSXV:TTR) – $2.00
Logistics
Titanium Transportation Group provides truckload, cross-border trucking, freight logistics, warehousing, and distribution services to clients in Canada and the U.S. and operates over 450 power units and 1,500 trailers. The Company’s long-term margin expansion strategy centres around the use of big data analytics, accretive M&A, and automation of several operational functions to drive efficiencies. In the short term, increases in the American Trucker Association’s (ATA) US Truck Tonnage Index and demand for cross border trucking services could lead to sustained momentum in the Company’s topline growth.
- Market Cap: $72.9 Million
- Y/Y Revenue Growth: 45.5%
- Y/Y Revenue Growth – Sector Percentile: 96%
Grande West Transportation Group Inc. (TSXV:BUS) – $1.27
Heavy Machinery & Vehicles
Grande West Transportation manufactures multi-purpose transit vehicles for public and private clients in the U.S. and Canada. The Company is in the process of implementing its “Right-Sizing” strategy, making a push towards smaller bus sizes to offer a superior customer experience. The Company could further benefit from increased government infrastructure spending in the US and Canada. An example is the Trudeau government’s $20B infrastructure plan to modernize transit over the next 10 years.
- Market Cap: $91.0 Million
- Y/Y Revenue Growth: 45.1%
- Y/Y Revenue Growth – Sector Percentile: 95%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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