price to sales ratio

ABB LTD. ADRs $17 (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 2.3 billion; Market cap: $39.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.4%; TSINetwork Rating: Above Average; www.abb.com) makes transformers, transmission systems and circuit breakers for electrical utilities. The Switzerland-based firm also produces automation systems and robotics for industrial clients. Due to slowing economic growth in China and developing countries, the company now expects its revenue to grow by 3% to 6% each year to 2020. That’s down from its earlier forecast of 4% to 7% annual growth. ABB is also reorganizing into four new divisions: Discrete Automation and Motion, Power Grids, Electrification Products and Process Automation. This change will make it easier for ABB to sell the Power Grids division, which makes transmission and distribution equipment for utilities. This business’s sales have slowed, and it faces strong competition from bigger firms like GE/Alstom....

TEXAS INSTRUMENTS INC. $47 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.0 billion; Market cap: $47.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.2%; TSINetwork Rating: Average; www.ti.com) has increased its quarterly dividend by 11.8%, to $0.38 a share from $0.34. The new annual rate of $1.52 yields 3.2%. It has now raised its payout annually for the past 12 years. In addition, the chipmaker has increased its share repurchase authorization by $7.5 billion. As a result, it can now buy back up to $9.3 billion of its shares, which is equal to 20% of its market cap. There are no time limits for these repurchases. Since 2005, it has bought back 40% of its outstanding shares. Texas Instruments is a buy....

MOLSON COORS BREWING CO. $83 (New York symbol TAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 185.0 million; Market cap: $15.4 billion; Price-to-sales ratio: 4.0; Dividend yield: 2.0%; TSINetwork Rating: Average; www.molson coors.com) jumped 20% in response to Anheuser-Busch InBev’s offer to buy rival brewer SABMiller plc. In 2008, Molson Coors merged its U.S. brewing operations with those of SABMiller to form MillerCoors. Each company has a 50% voting interest in this joint venture, but SABMiller gets 58% of the profits, while Molson Coors gets 42%. To satisfy competition regulators, a combined Anheuser-Busch InBev and SABMiller would probably have to sell its stake in the MillerCoors joint venture....

CEDAR FAIR L.P. $53 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 56.0 million; Market cap: $3.0 billion; Price-to-sales ratio: 2.6; Dividend yield: 5.7%; TSINetwork Rating: Average; www.cedarfair.com) began operating in 1987 and is now one the world’s largest amusement park operators. Its parks attracted more than 23.3 million visitors in 2014. Its flagship park is Cedar Point, in Sandusky, Ohio, which was first developed as a recreational area in 1870. Other major parks include Knott’s Berry Farm near Los Angeles, Kings Island in Cincinnati, Dorney Park in Pennsylvania and Adventure in central Michigan. In 2006, Cedar Fair expanded outside the U.S. for the first time when it purchased Canada’s Wonderland near Toronto. In all, it owns 11 amusement parks, three outdoor water parks, one indoor water park and five hotels....

FINNING INTERNATIONAL INC. $22 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding:171.4 million; Market cap: $3.8 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.finning.com) started up in1933 and is now the world’s largest dealer of tractors, bulldozers and trucks made by Caterpillar Inc. (New York symbol CAT). It also sells heavy equipment made by other firms. Finning’s clients are mainly in the mining, forest products and construction industries.

Western Canada (B.C., Alberta, Yukon, Northwest Territories and parts of Nunavut) supplied 53%of Finning’s revenue in 2014, followed by South America (Argentina, Chile, Uruguay and Bolivia),which contributed 32%, and the U.K. and Ireland(15%).

Big growth in services

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CANADIAN IMPERIAL BANK OF COMMERCE $94 (Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 397.2 million; Market cap: $37.3 billion;Price-to-sales ratio: 3.0; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.cibc.com) earned $990 million in its fiscal2015 third quarter, which ended July 31, 2015, up 9.0% from $908million a year earlier. Earnings per share gained 9.9%, to $2.45from $2.23, on fewer shares outstanding. Revenue improved 4.9%,to $3.5 billion from $3.4 billion.

CIBC’s main Canadian retail banking operations (61% of the total) reported 8.0% higher profits after approving more loans and setting aside less money to cover potential defaults. Earnings from securities trading (26%) fell 4.3%, as higher employee salaries offset improving trading volumes. Wealth management earnings(13%) gained 15.7%, thanks to rising stock markets, which increased the value of the assets this business administers.

Loan-loss provisions fell 3.1%, to $189 million from $195 million ayear earlier, mainly due to better results from CIBC’s credit card portfolio.

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BOMBARDIER INC. (Toronto symbols BBD.A $1.53 and BBD.B $1.46; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 2.2 billion; Market cap: $3.2 billion; Price-to-sales ratio: 0.2; Dividend suspended in February 2015; TSINetwork Rating: Extra Risk; www.bombardier.com) owns 50% of a joint venture in China that has won an order to build 15 high speed passenger trains for that country’s rail system. The company’s share of the $381- million U.S. contract is $190.5 million U.S., or 1% of its annual revenue.

Deals like this enhance the prospects of the railcar division as Bombardier prepares to sell part of it in an initial public offering later this year.

Bombardier is still a hold.

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MAPLE LEAF FOODS INC. $22 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 140.8 million; Market cap: $3.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 1.5%; TSINetwork Rating: Average; www.mapleleaf.ca) gets 8% of its revenue by exporting packaged meats to the U.S., and the lower Canadian dollar makes these products cheaper to American buyers. The weak dollar also makes imported meats more expensive in Canada.

These benefits come while Maple Leaf takes steps to improve its long-term outlook, including a major restructuring involving closing older plants and shifting their operations to newer facilities. However, it could take a year or more before the company realizes the plan’s full benefits.

Maple Leaf Foods is a hold.

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ANDREW PELLER LTD. $18 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.3 million; Market cap: $257.4 million; Price-to-sales ratio: 0.8; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest producer of wines, after Constellation Brands.

The company continues to successfully launch new premium priced brands. In the first quarter of its 2016 fiscal year, which ended June 30, 2015, Peller’s sales rose 4.5%, to $83.1 million from $79.5 million a year earlier.

Earnings jumped 67.5%, to $6.7 million, or $0.48 a share, from $4.0 million, or $0.29. Without unusual items, such as losses on hedging contracts Peller uses to lock in foreign exchange rates, earnings gained 40.3%.

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MOLSON COORS CANADA INC. (Toronto symbols TPX.A $91 and TPX.B $91; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 185.0 million; Market cap: $16.8 billion; Price-to-sales ratio: 3.0; Dividend yield: 2.4%; TSINetwork Rating: Average; www.molson coors.com) merged its U.S. brewing operations with those of rival SABMiller in July 2008 to form MillerCoors. Each company has a 50% voting interest in this joint venture, but Miller gets 58% of the profits, while Molson Coors gets 42%.

Since the merger, MillerCoors has saved roughly $1 billion by combining plants and distribution networks (all amounts except share price and market cap in U.S. dollars).

In the quarter ended June 30, 2015, lower raw material, packaging and fuel costs increased the company’s share of earnings from MillerCoors by 9.3% from a year earlier. However, unfavourable currency rates cut its Canadian earnings by 5.5% and its European profits by 21.5%. A restructuring in China also increased losses at its international operations by 56.8%.

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