Consumer staples is a sector that relies on selling as many products to consumers as possible, keeping costs down, and growing its business overall. When the economy struggles, these stocks tend to underperform as less business is fundamentally expected. But when economic activity picks up, these stocks can boost portfolio returns. In selecting consumer staples stocks, consider operating margins, growing revenue bases, and low valuation metrics such as Enterprise Value/Revenue, all of which can be seen in the companies on our list today.
Leon’s Furniture Ltd. (TSX: LNF) – $14.51
Home Furnishings Retailers
Leon’s Furniture Limited is a Canada-based retailer of home furnishings, electronics and appliances across Canada from Alberta to Newfoundland and Labrador. The Company’s brand name home furnishings, appliances and home electronics include: bedroom sets, living room and dining room furniture, mattresses, occasional furniture, wall units, electronic fireplaces, dishwashers, washers, dryers, freezers, microwaves, refrigerators, vacuums, audio systems, DVD players, home theatres, satellite systems and televisions.
- Market Cap: $1,024,313,869
- EV/Revenue: 0.73x
- Operating Margin (2014): 6.07%
- Revenue CAGR (3 years): 42.46%
Lassonde Industries Inc. (TSX: LAS.A) – $140.00
Food Processing
Lassonde Industries Inc. develops, manufactures and markets a range of fruit and vegetable juices and drinks. The Company operates its business through four subsidiaries: A. Lassonde, Clement Pappas, Lassonde Specialties and Arista Wines.
- Market Cap: $470,474,025
- EV/Revenue: 0.72x
- Operating Margin (2014): 7.48%
- Revenue CAGR (3 years): 15.82%
easyhome Ltd. (TSX: EH) – $18.13
Appliances, Tools & Housewares
easyhome Ltd. is a Canada-based company that is engaged in providing goods and financial services to the cash and credit constrained consumer. easyhome Ltd. serves its customers through two operating divisions: easyhome Leasing and easyfinancial. easyhome’s leasing business is engaged in the provision of merchandise leasing, with an option to purchase household furnishings, appliances and home electronic products to consumers under weekly or monthly agreements. easyfinancial is the Company’s financial services arm, offering installment loans and ancillary financial services. easyfinancial offers unsecured, installment loans in amounts from $500 to $10,000 for nine to 48-month terms with bi-weekly, semi-monthly and monthly repayment options.
- Market Cap: $239,491,527
- EV/Revenue: 1.40x
- Operating Margin (2014): 13.35%
- Revenue CAGR (3 years): 11.23%
BRP Inc. (TSXV: DOO) – $28.30
Recreational Products
BRP Inc. is a Canada-based company engaged in design, development, manufacturing, distribution and marketing of power sports vehicles and propulsion systems. The Company has four product categories: the year-round products; the seasonal products; the propulsion systems, and parts, accessories and clothing (PAC) products. Its year-round products consist of Can-Am ATVs, recreational SSVs and Spyder roadsters. Its seasonal products consist of Ski-Doo and Lynx snowmobiles and Sea-Doo PWCs. Its propulsion systems consist of Evinrude outboard engines and Rotax engines. Its PAC products support the Company’s range of product lines with replacement parts, additional product accessories and complementary clothing.
- Market Cap: $1,088,986,061
- EV/Revenue: 0.53x
- Operating Margin (2014): 8.65%
- Revenue CAGR (3 years): 9.93%
Pollard Banknote Ltd. (TSX: PBL) – $7.50
Casinos & Gaming
Pollard Banknote Ltd is a Canada-based company, primarily involved in the manufacture and sale of lottery, and gaming products. The Company is engaged in the production of instant tickets and provides related programming, design and marketing support. Pollard also manufactures pull-tab tickets and bingo paper, and provides lottery management services, including warehousing and distribution.
- Market Cap: $181,570,023
- EV/Revenue: 1.27x
- Operating Margin (2014): 9.02%
- Revenue CAGR (3 years): 4.17%
