Price/earnings Ratio
The price/earnings ratio (or p/e ratio) is calculated by taking the current market price of a company's common stock and dividing it by the company's annual earnings per share. This ratio is a tool used to evaluate a company's performance and calculate stock trading strategy.
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away.
Today’s tip: “How we use three financial …read more »
P/e ratios (the ratio of a stock’s price to its per-share earnings) are published regularly in newspapers and on the Internet. These financial ratios are widely followed, and are an important part of many investors’ decision making.
Typically, you calculate p/e’s using a stock’s current price and its earnings for the previous 12 months. The general rule is that the …read more »
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice, including how to use financial ratios. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away.
Today’s …read more »
FORTIS INC. $32 (Toronto symbol FTS; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 174.4 million; Market cap: $5.6 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.fortis.ca) continues to benefit from its 2007 purchase of Terasen Inc., which distributes natural gas to 939,600 customers in B.C.
Terasen’s profits rose 11.1% in 2010, and provided 46% of Fortis’s record …read more »
P/e ratios (the ratio of a stock’s price to its per-share earnings) are published regularly in newspapers and on the Internet. These financial ratios are widely followed, and are an important part of many investors’ decision making.
Typically, you calculate p/e’s using a stock’s current price and its earnings for the previous 12 months. The general rule is that the …read more »
Among other bargain stocks, we’ve discovered a diversified Canadian food processing company whose brands have a lot of enduring value, and whose core business, meat processing, represents 70 percent of total sales.
We figure that no matter what the economy does, people will always need to eat. So, we doubt that consumer spending on groceries will decline very much. The key …read more »
REITMANS (CANADA) LTD. $18.37 (Toronto symbol RET.A; SI Rating: Extra Risk) (514-384-1140; www.reitmans.com; Shares outstanding: 70.8 million; Market cap: $1.3 billion) is Canada’s largest specialty women’s wear retailer.
The company now has 952 stores in operation, consisting of 366 Reitmans, 160 Smart Set/Dalmys, 162 Penningtons, 53 RW&Co., 124 Addition Elle, 73 Thyme Maternity and 14 Cassis stores.
In the three months ended …read more »
LEON’S FURNITURE $59 (Toronto symbol LNF; SI Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 17.7 million; Market cap: $1.0 billion) has built new warehouse showrooms and renovated its existing stores to profit from the boom in residential construction over the last few years. But even with housing sales now in a slowdown, the company will keep prospering because new homeowners tend …read more »
METRO INC. $37.17 (Toronto symbol MRU.A; SI Rating: Extra Risk) (514-643-1055; www.metro.ca; Shares outstanding: 114.5 million; Market cap: $4.3 billion) is a leader in the food distribution business in Quebec, operating Metro supermarkets, Super C discount supermarkets and Marche Richelieu neighbourhood stores. It also operates Loeb stores in northeastern Ontario.
Metro expanded further into Ontario in 2005 with the acquisition of …read more »
FIRSTSERVICE CORP. $29.58 (Toronto symbol FSV; SI Rating: Extra Risk) (416-960- 9500; www.firstservice.com; Shares outstanding: 28.6 million; Market cap: $846.0 million) reports 26.3% higher revenues in its third quarter ended December 31, 2006, to $374.8 million from $296.7 million a year earlier. (All figures except share price in U.S. dollars.) Earnings per share rose 30.4%, to $0.30 from $0.23.
FirstService now …read more »
