4 Canadian Tech Stocks Trading at an EV/EBITDA Discount

The Canadian tech stocks on our list today have low EV/EBITDA ratios relative to similar companies their sector

SmallCapPower | October 26, 2017: Today we have identified four Canadian tech stocks that offer a range of services and products, including fleet management solutions, supply chain solutions and telecommunications-related hardware. The group trades at an EV/EBITDA ratio ranging from 5.4x to 11x.

Mediagrif Interactive Technologies Inc. (TSX:MDF) – $13.45
Online Services

Mediagrif Interactive Technologies is a Canada-based company that provides eCommerce solutions to businesses and consumers. The Company owns a number of web-based platforms including Joboom and Intertrade. Mediagrif employs 440 individuals and has offices in Canada, the United States and China.

  • Market Cap: $200 Million
  • Enterprise Value to EBITDA (LTM): 8.03x
  • Free Cash Flow (LTM): $18 Million

Vecima Networks Inc. (TSX:VCM) – $10.05
Communications & Networking

Founded in 1988, Vecima Networks Inc. is a Canadian company that provides hardware and software for cable service providers. The Company’s products process data from cable networks for consumers to utilize on their televisions or Internet devices. Vecima also provides fleet managers with analytics and key information to assist in the decision-making process and improve overall efficiency. Vecima has three offices in Western Canada, and a software development facility in India.

  • Market Cap: $225 Million
  • Enterprise Value to EBITDA (LTM): 8.10x
  • Free Cash Flow (LTM): -$ 1 Million

Celestica Inc. (TSX:CLS) – $15.50
IT Services & Consulting

Celestica Inc. a technology solution company headquartered in Toronto, Canada. The Company provides a variety of process improvement solutions to the electronics manufacturing segment. Celestica’s services include design and development, engineering services, raw materials sourcing, assembly & testing and supply chain management solutions.

  • Market Cap: $2,230 Million
  • Enterprise Value to EBITDA (LTM): 5.43x
  • Free Cash Flow (LTM): $265 Million

BSM Technologies Inc (TSX:GPS) – $1.26
IT Services & Consulting

BSM Technologies Inc. is a Canada-based company that provides GPS fleet management solutions to large corporations. The Company provides clients with software tailored to individual needs, offering solutions that include remote monitoring, driver compliance checks and fleet management, all in real time.

  • Market Cap: $104 Million
  • Enterprise Value to EBITDA (LTM): 11.03x
  • Free Cash Flows (LTM): – $1 Million

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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