FINNING INTERNATIONAL INC. $22 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.1 million; Market cap: $3.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Canada, South America and the U.K.
The U.K. accounted for 18% of its 2015 revenue. Due to weak commodity prices, Finning is cutting costs at all of its businesses. These savings should let it keep paying its $0.73-a-share dividend, which yields 3.3%. The stock trades at 20.4 times the company’s depressed 2016 earnings forecast of $1.08 a share.
Finning is still a buy.