The TSX financial stocks on our list have demonstrated strong operational efficiency, shown by an average EBITDA margin of 78.8%
SmallCapPower | October 18, 2017: The EBITDA margin allows investors to compare the underlying operating performance of prospective companies. Today, we have identified four TSX financial stocks that have demonstrated strong operational efficiency, shown by an average EBITDA margin of 78.8%.
Timbercreek Financial Corp. (TSX:TF) – $9.54
Banks
Founded in 1999, Timbercreek Financial Corp is a Canada-based real estate lender and investor. The Company’s strategy focuses on investing in real estate directly, through mortgages, and in publicly-traded companies that own real estate. With over 18 offices, Timbercreek employs over 500 people and manages $6 billion in assets.
- Market Cap: $710 million
- EBITDA Margin: 83.4%
- Net Income After Taxes: $46 Million
- P/E Ratio: 11.97x
Atrium Mortgage Investment Corp. (TSX:AI) – $12.24
Corporate Financial Services
Atrium Mortgage Investment Corporation is a mortgage lender that provides residential and commercial mortgages in urban centers across Canada. The Company offers clients high interest rate loans, in exchange for flexible, quick and creative lending options. Atrium’s mortgage portfolio consists of approximately 200 mortgage loans valued at $570 million. A significant portion of the Company’s loans are for bridge financing, land assembly and infill construction.
- Market Cap: $406 Million
- EBITDA Margin: 83.2%
- Net Income After Taxes: $26 Million
- P/E Ratio: 12.82x
Home Capital Group Inc. (TSX:HCG) – $13.67
Banks
Home Capital Group operates through its subsidiary Home Trust Company. Home Trust is an alternate lender that operates as a federally regulated trust. The Company offer its clients deposits, mortgages, retail credit and credit card issuing services. Home Capital has offices across Canada, in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
- Market Cap: $1,097 Million
- EBITDA Margin: 74.7%
- Net Income After Taxes: $247 Million
- P/E Ratio: 3.68x
Street Capital Group Inc (TSX:SCB) – $1.28
Investment Management & Fund Operators
Founded in 2007, Street Capital Group Inc. operated as a mortgage lender for 10 years before receiving approval to become a Schedule I Bank. The Company is authorized to issue and sell mortgage backed securities, and is an approved lender with the Canada Mortgage and Housing Corporation (CMHC). Currently, Street Capital has over $25 billion in mortgages under administration.
- Market Cap: $157 Million
- EBITDA Margin: 73.1%
- Net Income After Taxes: $14 Million
- P/E Ratio: 9.90x
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in any of the companies mentioned above.
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