price to sales ratio

CINTAS CORP. $85 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 111.7 million; Market cap: $9.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.0%; TSINetwork Rating: Average; www.cintas.com) designs and makes uniforms, then sells them to over 900,000 businesses, mainly in North America. It also offers related products and services, like office cleaning and first aid kits. Last year, the company sold its document-shredding operations to Toronto-based Shred-it International. In exchange, it received 42% of the combined firm and $180 million in cash. In May 2015, the company received a $113.4-million dividend from Shred-it. Shred-it recently accepted a $2.3-billion takeover offer from Stericycle (Nasdaq symbol SRCL). As a result, Cintas will get between $550 million and $600 million for its stake. Stericycle expects to complete the purchase by the end of 2015....

GENUINE PARTS CO. $88 (New York symbol GPC; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 152.3 million; Market cap: $13.4 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.8%; TSINetwork Rating: Average; www.genpt.com) gets 53% of its sales and 55% of its earnings by selling replacement auto parts: Genuine operates 1,100 outlets under the NAPA banner, and its distribution business serves 4,900 independent stores in North America, Australia and New Zealand. The company also distributes industrial parts (31% of sales, 29% of earnings), office products (12%, 11%) and electrical equipment (4%, 5%). As the economy improved after the 2008/09 recession, the company’s sales rose 36.9% from $11.2 billion in 2010 to $15.3 billion in 2014. Overall earnings jumped 49.6%, from $475.5 million to $711.3 million. Per-share profits gained 53.7%, from $3.00 to $4.61, on fewer shares outstanding....

HOME CAPITAL GROUP INC. $32 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 70.2 million; Market cap; $2.2 billion; Price-to-sales ratio: 3.9; Dividend yield: 2.8%; TSINetwork Rating: Average; www.homecapital.com) caters to borrowers who don’t meet the stricter standards of traditional banks, such as the self-employed and recent immigrants with limited credit histories. The stock fell 20% after the company said it sold $1.29 billion of new home mortgage loans in the second quarter of 2015, down 15.7% from $1.53 billion a year earlier. Home Capital sells most of these loans through independent mortgage brokers, and it has cut ties with some of them over concerns about inaccurate loan applications. In all, these brokers supplied 15% of the company’s new mortgages....

LOBLAW COMPANIES LTD. $67 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 412.6 million; Market cap: $27.6 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.loblaw.ca) announced that 13,600 unionized employees at 69 of its Ontario supermarkets have voted to accept a six-year labour contract. The deal includes wage increases and new pension protections. The company continues to benefit from the recent closure of Target’s 133 Canadian stores, as well as its 2014 acquisition of Shoppers Drug Mart. Even so, the grocery business remains highly competitive, particularly in Ontario. This new labour deal cuts Loblaw’s risk. Loblaw is a buy.

BCE INC. $55 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 841.9 million; Market cap: $46.3 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.7%; TSINetwork Rating: Above Average; www.bce.ca) is Canada’s largest telephone provider, with 7.0 million customers in Ontario, Quebec and the Atlantic provinces. It also has 3.3 million highspeed Internet users and 2.7 million TV subscribers. This business supplies 57% of BCE’s revenue. The company also sells wireless services (31% of revenue) to 8.1 million customers across Canada, and its Bell Media segment (12%) owns CTV Television, specialty channels and radio stations. In the three months ended March 31, 2015, BCE’s overall earnings rose 12.6%, to $705 million from $626 million a year earlier. But per-share profits gained just 3.7%, to $0.84 from $0.81, on more shares outstanding. Revenue rose 2.8%, to $5.24 billion from $5.10 billion....

TRANSCANADA CORP. $51 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 708.9 million; Market cap: $36.2 billion; Price-to-sales ratio: 3.5; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.transcanada.com) still hopes its Keystone XL pipeline will be approved, even though Alberta’s new NDP government has withdrawn the province’s support for the project. Keystone XL would pump crude from Alberta’s oil sands to the U.S. Gulf Coast. Meanwhile, the company has improved its efficiency and adopted new technologies, both of which are helping it pump more oil through its existing Keystone pipeline between Alberta and refineries in Illinois. TransCanada recently freed up 10,000 to 15,000 barrels on this 590,000-barrel-a-day line. Long-term contracts account for 90% of Keystone’s current capacity, so the extra space will help TransCanada meet demand for urgent shipments. TransCanada is a buy.

BOMBARDIER INC. (Toronto symbols BBD.A $1.99 and BBD.B $1.90; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $3.3 billion; Price-to-sales ratio: 0.2; Dividend suspended in February 2015; TSINetwork Rating: Extra Risk; www.bombardier.com) is down 52% since the start of 2015, mainly due to rising costs and delays to develop its new CSeries passenger jet. In addition, lower oil prices have diminished the main appeal of this plane—that it’s 20% more fuel-efficient than comparable models. What’s more, Bombardier’s new management team is reviewing its Global business jet program, which could postpone the planned launch of new models in 2016 and 2017. Bombardier recently raised $3.1 billion U.S. by selling new shares and notes. It also plans to sell shares in its transportation division, which makes passenger railcars. These moves should give it enough resources to finish the CSeries. Bombardier expects to begin delivering this new aircraft in 2016....

TELUS CORP. $45 (Toronto symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 605.5 million; Market cap: $27.2 billion; Price-to-sales ratio: 2.2; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.telus.com) is Canada’s second-largest wireless carrier, after Rogers Communications, with 8.2 million subscribers. Wireless now supplies 55% of Telus’s revenue and 66% of its earnings. The remaining 45% of revenue and 34% of earnings come from its wireline division, which serves 3.1 million traditional phone customers in B.C., Alberta and eastern Quebec. This business also has 1.5 million Internet users and 937,000 TV clients. Telus’s revenue rose 22.6%, from $9.8 billion in 2010 to $12.0 billion in 2014. Earnings gained 45.0%, from $983 million in 2010 to $1.4 billion in 2014. Per-share profits rose 51.0%, from $1.53 to $2.31, on fewer shares outstanding. Cash flow per share improved 24.4%, from $4.30 to $5.35....

SAPUTO INC. $30 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 392.9 million; Market cap: $11.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.7%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese. The company also operates dairies in the U.S., Australia and Argentina. In its 2015 fiscal year, which ended March 31, 2015, Saputo’s sales rose 15.4%, to $10.7 billion from $9.2 billion in 2014. That’s mainly due to Australian dairy producer Warrnambool Cheese and Butter Factory; Saputo paid $449.6 million for 87.92% of this business in February 2014. Warrnambool’s contribution helped offset lower cheese prices in fiscal 2015....

RIOCAN REAL ESTATE INVESTMENT TRUST $28 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 317.9 million; Market cap: $8.9 billion; Price-to-sales ratio: 6.9; Dividend yield: 5.0%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 290 shopping centres in Canada, including 15 under development. These holdings account for 84% of the trust’s rental revenue. The remaining 16% comes from 48 malls in the U.S. Former tenant Target Canada recently abandoned 26 stores in RioCan’s malls, representing 1.9% of the trust’s annual rental revenue. So far, RioCan has found new tenants for eight former Target outlets. It hopes to fill the other 18 in the next few months, but it will probably have to remodel them to handle two or more tenants....