price to sales ratio
SUNCOR ENERGY INC. $39 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $58.5 billion; Price-to-sales ratio: 1.8; Dividend yield: 2.9%; TSINetwork Rating: Average; www.suncor.com) produced 598,000 barrels a day in the first quarter of 2015, up 9.7% from 545,300 barrels a year earlier. The increase came from both its oil sands and conventional properties.
The oil-price drop has prompted Suncor to cut its planned 2015 capital spending by $1 billion, to between $6.2 billion and $6.8 billion. It also laid off 1,000 workers, or 7% of its workforce.
The company expects its job cuts and other cost controls to save it $600 million to $800 million in 2015, a year earlier than planned; Suncor’s cash flow was $9.1 billion in 2014.
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The oil-price drop has prompted Suncor to cut its planned 2015 capital spending by $1 billion, to between $6.2 billion and $6.8 billion. It also laid off 1,000 workers, or 7% of its workforce.
The company expects its job cuts and other cost controls to save it $600 million to $800 million in 2015, a year earlier than planned; Suncor’s cash flow was $9.1 billion in 2014.
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>TORSTAR CORP. $6.77 (Toronto symbol TS.B; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 80.3 million; Market cap: $543.6 million; Price-to-sales ratio: 0.8; Dividend yield: 7.8%; TSINetwork Rating: Average; www.torstar.com) publishes The Toronto Star, Canada’s largest daily newspaper by circulation. It also publishes three other dailies and over 100 weeklies. Torstar lost $49.6 million, or $0.62 a share, in 2014. That’s better than the 2013 loss of $58.0 million, or $0.73 a share.
These figures include costs related to job cuts and other measures Torstar took in response to falling advertising revenue at its newspapers. Since 2012, these moves have cut the company’s annual expenses by $60.4 million. Torstar expects savings to reach $77.1 million a year by 2017.
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These figures include costs related to job cuts and other measures Torstar took in response to falling advertising revenue at its newspapers. Since 2012, these moves have cut the company’s annual expenses by $60.4 million. Torstar expects savings to reach $77.1 million a year by 2017.
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TRANSCONTINENTAL INC. $18 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 78.1 million; Market cap: $1.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.8%; TSINetwork Rating: Average; www.tctranscontinental.com) is Canada’s leading printer of flyers, magazines, newspapers and books. It also publishes magazines and newspapers.
In its 2015 first quarter, which ended January 31, 2015, the company earned $36.1 million, up 36.7% from $26.4 million a year earlier. Earnings per share gained 35.3%, to $0.46 from $0.34, on more shares outstanding.
The gains mainly came from two recent acquisitions: in May 2014, Transcontinental bought U.S.- based Capri Packaging, a maker of plastic bags and pouches for cheese and other dairy products, for $146.1 million. And in June 2014, it paid Sun Media $78.8 million for 74 weekly newspapers in Quebec.
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In its 2015 first quarter, which ended January 31, 2015, the company earned $36.1 million, up 36.7% from $26.4 million a year earlier. Earnings per share gained 35.3%, to $0.46 from $0.34, on more shares outstanding.
The gains mainly came from two recent acquisitions: in May 2014, Transcontinental bought U.S.- based Capri Packaging, a maker of plastic bags and pouches for cheese and other dairy products, for $146.1 million. And in June 2014, it paid Sun Media $78.8 million for 74 weekly newspapers in Quebec.
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THOMSON REUTERS CORP. $52 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 791.8 million; Market cap: $41.2 billion; Price-to-sales ratio: 3.3; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information products in four main areas: financial (53% of 2014 revenue, 39% of earnings); legal (28%, 39%); tax (11%, 12%); and intellectual property and science (8%, 10%). (All amounts except share price and market cap in U.S. dollars.)
The Americas supplied 60% of Thomson’s 2014 revenue, followed by Europe (30%) and Asia (10%).
Many banks and financial services firms cut spending on the company’s products following the 2008 financial crisis. In response, it laid off staff and simplified its operations.
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The Americas supplied 60% of Thomson’s 2014 revenue, followed by Europe (30%) and Asia (10%).
Many banks and financial services firms cut spending on the company’s products following the 2008 financial crisis. In response, it laid off staff and simplified its operations.
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POTASH CORP. OF SASKATCHEWAN $42 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 832.1 million; Market cap: $34.9 billion; Price-to-sales ratio: 5.3; Dividend yield: 4.5%; TSINetwork Rating: Average; www.potashcorp.com) has suffered two recent setbacks. (All amounts except share price and market cap in U.S. dollars.)
First, the Saskatchewan government decided to change the timing of certain tax breaks for new potash mines and expansion projects. The province is also reviewing how it taxes potash producers.
Potash Corp. expects the new rules to cut its pre-tax earnings by $75 million to $100 million (Canadian) in 2015. To put that in context, it earned $1.5 billion, or $1.82 a share, in 2014.
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First, the Saskatchewan government decided to change the timing of certain tax breaks for new potash mines and expansion projects. The province is also reviewing how it taxes potash producers.
Potash Corp. expects the new rules to cut its pre-tax earnings by $75 million to $100 million (Canadian) in 2015. To put that in context, it earned $1.5 billion, or $1.82 a share, in 2014.
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AGRIUM INC. $132 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 144.0 million; Market cap: $19.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 3.0%; TSINetwork Rating: Average; www.agrium.com) gets 75% of its sales and 60% of its earnings from its retail stores, which consist of 1,450 locations in North America, South America and Australia. These outlets sell seed, fertilizer and other products to farmers. (All amounts except share price and market cap in U.S. dollars.)
The company gets the remaining 25% of its sales and 40% of its earnings by making nitrogen-based fertilizers from natural gas. It also operates potash and phosphate fertilizer mines. In the past few years, Agrium has built up its retail business through acquisitions. In December 2010, it paid $1.2 billion for AWB Ltd., which operated 220 stores in Australia In October 2013, the company added 210 stores in Western Canada and Australia in a $485-million deal with Viterra Inc.
These acquisitions, along with rising fertilizer prices, pushed up Agrium’s sales by 49.2%, from $10.7 billion in 2010 to $16.0 billion in 2012. Declining fertilizer prices cut its 2013 sales to $15.7 billion, but they improved to $16.0 billion in 2014.
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The company gets the remaining 25% of its sales and 40% of its earnings by making nitrogen-based fertilizers from natural gas. It also operates potash and phosphate fertilizer mines. In the past few years, Agrium has built up its retail business through acquisitions. In December 2010, it paid $1.2 billion for AWB Ltd., which operated 220 stores in Australia In October 2013, the company added 210 stores in Western Canada and Australia in a $485-million deal with Viterra Inc.
These acquisitions, along with rising fertilizer prices, pushed up Agrium’s sales by 49.2%, from $10.7 billion in 2010 to $16.0 billion in 2012. Declining fertilizer prices cut its 2013 sales to $15.7 billion, but they improved to $16.0 billion in 2014.
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NEWELL RUBBERMAID INC. $39 (New York symbol NWL; Aggressive Growth and Income Portfolios, Consumer sector; Shares outstanding: 269.0 million; Market cap: $10.5 billion; Price-to-sales ratio: 1.9; Dividend yield: 1.9%; TSINetwork Rating: Average; www.newellrubbermaid.com) makes plastic storage bins, tools, window blinds, pens and many other household goods.
Newell is up 30.0% since we made it our Stock of the Year for 2014 at $30 in our February 2014 issue. That’s mainly because of its successful multi-year cost-cutting plan, which included closing plants and merging distribution centres.
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Newell is up 30.0% since we made it our Stock of the Year for 2014 at $30 in our February 2014 issue. That’s mainly because of its successful multi-year cost-cutting plan, which included closing plants and merging distribution centres.
Savings sent earnings soaring
J.P. MORGAN CHASE & CO. $63 (New York symbol JPM; Income Portfolio, Finance sector; Shares outstanding: 3.7 billion; Market cap: $233.1 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.8%; TSINetwork Rating: Average; www.jpmorganchase.com) earned $5.9 billion in the three months ended March 31, 2015, up 12.2% from $5.3 billion a year earlier. Earnings per share rose 13.2%, to $1.45 from $1.28, on fewer shares outstanding. Without unusual items, Morgan earned $1.58 a share in the latest quarter. Revenue rose 4.1%, to $24.8 billion from $23.9 billion.
Most of these gains came from the bank’s securities-trading division, where earnings jumped 19.4% on stronger volumes. It also saw higher fee income from advising firms on mergers.
These increases helped offset slower growth in retail banking. Low interest rates continue to spur loan demand, but Morgan is earning less interest on the money it lends. At the same time, it has to pay more to attract depositors.
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Most of these gains came from the bank’s securities-trading division, where earnings jumped 19.4% on stronger volumes. It also saw higher fee income from advising firms on mergers.
These increases helped offset slower growth in retail banking. Low interest rates continue to spur loan demand, but Morgan is earning less interest on the money it lends. At the same time, it has to pay more to attract depositors.
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NEWMONT MINING CORP. $23 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.9 million; Market cap: $11.5 billion; Price-to-sales ratio: 1.6; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) will soon begin work on the first phase of its Long Canyon gold mine in Nevada.
Long Canyon will produce 100,000 to 150,000 ounces a year when it opens in 2017. The midpoint of that range— 125,000 ounces— is equal to 2.6% of the 4.85 million ounces Newmont produced in 2014. The mine should last eight years.
The company will spend $250 million to $300 million on this project. Based on current gold prices, the mine should add $100 million a year to Newmont’s annual operating earnings.
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Long Canyon will produce 100,000 to 150,000 ounces a year when it opens in 2017. The midpoint of that range— 125,000 ounces— is equal to 2.6% of the 4.85 million ounces Newmont produced in 2014. The mine should last eight years.
The company will spend $250 million to $300 million on this project. Based on current gold prices, the mine should add $100 million a year to Newmont’s annual operating earnings.
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PEPSICO INC. $97 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $145.5 billion; Price-to-sales ratio: 2.2; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www. pepsico.com) has replaced rival Coca-Cola (New York symbol KO) as the official soft drink sponsor of the National Basketball Association.
Coca-Cola still has marketing deals with some NBA teams and players, but this new multi-year agreement will let PepsiCo promote a wider range of products, such as Gatorade sports drinks and Frito-Lay snack foods, on NBA television broadcasts and other league events.
PepsiCo is a hold.
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Coca-Cola still has marketing deals with some NBA teams and players, but this new multi-year agreement will let PepsiCo promote a wider range of products, such as Gatorade sports drinks and Frito-Lay snack foods, on NBA television broadcasts and other league events.
PepsiCo is a hold.
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