Debt is like a two-sided coin: it has positive benefits, allowing a business to leverage its operations and create more value with less resources, yet it creates financial uncertainty through increased interest payments and capital constraints. The companies on our list today have greatly leveraged its operations up to a point where debt levels have increased and now exceed the last three years of revenue, combined.
First National Financial Corp. (TSX: FN) – $18.65
Corporate Financial Services
First National Financial Corporation is the parent company of First National Financial LP, a Canadian-based originator, underwriter and servicer of prime single family residential, multi-unit residential and commercial mortgages through its residential underwriting branches in Toronto, Calgary, Vancouver and Montreal. The Company sources its single family mortgages through independent mortgage brokers and its customer base and sources its multi-unit residential and commercial mortgages through its in-house mortgage underwriters. First National funds the mortgages it originates primarily through institutional placements and a range of securitization alternatives.
- Market Cap: $1,121,705,608
- Total Debt (LFQ): $24,291,623,000
- Total Revenue (Last 3 Years): $2,208,228,000
- L3Y Revenues – Current Debt: -$22,083,395,000
Morguard Corp. (TSX: MRC) – $147.25
Real Estate Development & Operations
Morguard Corporation is a Canada-based real estate equity investment company engaged in private equity investment management and advisory services, and real estate investment, with a focus on high-quality assets and diversification. The Company’s three primary businesses include Investments in real property, which includes a diversified portfolio of office, industrial, retail and multi-unit residential properties; Real Estate Investment Trusts, under which Morguard owns interest in two Real Estate Investment Trusts to facilitate portfolio investments in residential real estate assets in both Canada and the United States, namely Morguard REIT and Morguard North American Residential REIT, and Real Estate Investment Services, which serves institutional clients and private investors with advisory and management services.
- Market Cap: $1,844,053,086
- Total Debt (LFQ): $4,125,008,000
- Total Revenue (Last 3 Years): $1,497,647,000
- L3Y Revenues – Current Debt: -$2,627,361,000
Amaya Inc. (TSX: AYA) – $34.60
Software
Amaya Inc., formerly Amaya Gaming Group Inc., is a Canada-based provider of technology-based solutions, products and services in the global gaming and interactive entertainment industries. The Company operates in two segments: Business-to-Consumer (B2C) and Business-to-Business (B2B). The Company’s B2C business consists of the operations of Amaya Group Holdings (IOM) Limited and its subsidiaries (collectively, Rational Group), which, among other things, offer online and mobile real- and play-money poker and other gaming products, including casino and sports betting (also known as sportsbook), as well as certain live poker tours and events, branded poker rooms in casinos in cities around the world and poker programming for television and online audiences. The Company’s B2B business consists of the operations of certain of its subsidiaries, which offer interactive, land-based and lottery gaming solutions.
- Market Cap: $4,785,557,925
- Total Debt (LFQ): $3,384,273,000
- Total Revenue (Last 3 Years): $910,549,010
- L3Y Revenues – Current Debt: -$2,473,723,990
Northland Power Inc. (TSX: NPI) – $16.44
Electric Utilities
Northland Power Inc., through its subsidiaries, provides power-producing facilities and a pipeline of construction and development projects. Northland’s operating assets consist of facilities that produce electricity from natural gas. Northland’s operating assets and investments are located in Canada, the United States and Europe.
- Market Cap: $2,729,660,955
- Total Debt (LFQ): $3,379,408,000
- Total Revenue (Last 3 Years): $1,678,991,000
- L3Y Revenues – Current Debt: -$1,700,417,000
Innergex Renewable Energy Inc. (TSX: INE) – $10.60
Electric Utilities
Innergex Renewable Energy Inc. (Innergex) is a Canada-based developer, owner and operator of renewable power-generating facilities with a focus on hydroelectric, wind power and solar photovoltaic (PV) projects. The Company is engaged in developing, owning, and operating run-of-river hydroelectric facilities, wind farms, and solar photovoltaic farms and carry out operations in Quebec, Ontario, British Columbia, and Idaho, United States.
- Market Cap: $1,070,412,051
- Total Debt (LFQ): $1,885,979,000
- Total Revenue (Last 3 Years): $616,748,000
- L3Y Revenues – Current Debt: -$1,269,231,000
