The TSX industrial stocks on our list today trade at low price/cash flow multiples
SmallCapPower | February 27, 2018: Today we have identified three TSX industrial stocks that appear to be attractive based upon valuation. These companies trade at an average forward price/cash flow of 2.3x, outperforming their peers which average 8.9x.
Foraco International SS.AA (TSX:FAR) – $0.38 Construction & Engineering
Foraco is a France-based drilling company. The Company operates over 300 drills for use in mineral drilling and water projects. Foraco is the third-largest drilling company globally.
ENTREC is a Canada-based industrial company. The Company operates a variety of specialized cranes, primarily for use in the oil and gas industry. ENTREC also offers use of its trailers, hydraulic platforms, and tractors.
Market Cap: $21.5 Million
YTD Total Return: -10.0%
Forward Price to Cash Flow Per Share FY2018: 2.3x
Kelso Technologies Inc. (TSX:KLS) – $0.82 Industrial Machinery & Equipment
Kelso Technologies is a Canada-based industrial company. The Company designs and sells service equipment for railway cars, allowing safe transportation for regular and hazardous materials. The Company’s primary product is the DOT/TC11 Tank Car, a railway car with high durability and multiple safety features for transporting oil.
Market Cap: $38.5 Million
YTD Total Return: 24.2%
Forward Price to Cash Flow Per Share FY2018: 2.7x
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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Foraco International SS.AA (TSX:FAR) – $0.38
ENTREC Corp. (TSX:ENT) – $0.18
Kelso Technologies Inc. (TSX:KLS) – $0.82
