The Canadian tech stocks on our list trade at some of the lowest Forward EV/Revenue (NTM) multiples in the sector
SmallCapPower | November 21, 2017: Today we have identified five Canadian tech stocks that provide a variety of services ranging from GPS fleet management systems to precious metals ownership platforms. In addition, four of the five stocks trade below expected revenues (NTM), providing a potential value buying opportunity.
Baylin Technologies Inc. (TSX:BYL) – $2.55
Communications & Networking
Baylin Technologies manufactures antennas for telecom customers in a handful of jurisdictions. The Company’s products are used for cell towers, mobile devices and home networking devices. Baylin has over 1,000 employees worldwide, including ~100 engineers that work at its three production facilities in Korea, China and Vietnam.
- Market Cap: $56 Million
- Forward Enterprise Value to Sales (NTM) : 0.47x
- 1 Month Total Return: 30.8%
Trilogy International Partners Inc. (TSX:TRL) – $5.65
Wireless Telecommunications Services
Trilogy International Partners is a Canada-based wireless telecom company with operations in New Zealand and Bolivia. Trilogy’s subsidiaries include 2degrees and Viva. With a 24% market share in Bolivia, Viva provides prepaid and postpaid voice and data services to approximately 2.2 million clients. Alternatively, 2degrees boasts a 23% market share in New Zealand serving ~1.5 million subscribers. 2degrees also provides voice and data services (up to 4g) with prepaid and postpaid options.
- Market Cap: $250 Million
- Forward Enterprise Value to Sales (NTM) : 0.82x
- 1 Month Total Return: -15.2%
AcuityAds Holdings Inc. (TSXV:AT) – $1.65
Software
AcuityAds is a technology company that provides programmatic marketing services using machine learning to clients, allowing them to better target marketing audiences. The Company’s programmatic marketing platform allows users to purchase digital advertising space on a real-time bidding platform. AcuityAds also provides marketers with real time data analytics and reporting on costing and brand safety.
- Market Cap: $54 Million
- Forward Enterprise Value to Sales (NTM) : 0.89x
- 1 Month Total Return: -21.4%
GoldMoney Inc. (TSX:XAU) – $6.74
Online Services
GoldMoney offers precious metals custody services along with a precious metals trading platform (called GoldMoney Holding) that allows investors to hold commodities such as gold, silver, platinum and palladium in their portfolios. The Company recently announced that it would integrate cryptocurrencies onto its existing platform.
- Market Cap: $515 Million
- Forward Enterprise Value to Sales (NTM) : 0.97x
- 1 Month Total Return: 28.4%
BSM Technologies Inc. (TSX:GPS) – $1.21
IT Services & Consulting
Founded in 1996, BSM Technologies designs and manufactures GPS fleet management systems for large enterprise clients. BSM’s fleet management systems service clients primarily in the railways, construction and government sectors. The Company retails hardware to its clients and gives customers access to its related software, generating recurring revenues. Using BSM’s products, clients can monitor their fleet (rail cars, construction equipment, buses etc.) in real time, and receive updates on location, speed, predictive maintenance and driver management & assistance.
- Market Cap: $100 Million
- Forward Enterprise Value to Sales (NTM) :1.31x
- 1 Month Total Return: -5.5%
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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