price to sales ratio
ANDREW PELLER LTD. $15 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.3 million; Market cap: $214.5 million; Price-to-sales ratio: 0.7; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest producer of wines, after Vincor International. Its wineries in Nova Scotia, Ontario and British Columbia account for 13.4% of the Canadian wine market.
In the second quarter of its 2015 fiscal year, which ended September 30, 2014, Peller’s sales rose 7.2%, to $82.8 million from $77.2 million a year earlier. That’s mainly because the company started selling its Wayne Gretzky wines in Western Canada. It also launched several new products, including its skinnygrape spritzers and Panama Jack cocktails.
Earnings jumped 45.5%, to $5.1 million, or $0.37 a share, from $3.5 million, or $0.25.
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In the second quarter of its 2015 fiscal year, which ended September 30, 2014, Peller’s sales rose 7.2%, to $82.8 million from $77.2 million a year earlier. That’s mainly because the company started selling its Wayne Gretzky wines in Western Canada. It also launched several new products, including its skinnygrape spritzers and Panama Jack cocktails.
Earnings jumped 45.5%, to $5.1 million, or $0.37 a share, from $3.5 million, or $0.25.
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BLACKBERRY LTD. $15 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 528.5 million; Market cap: $7.9 billion; Price-to-sales ratio: 1.7; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) lost $148 million, or $0.28 a share, in its fiscal 2015 third quarter, which ended November 29, 2014 (all amounts except share price and market cap in U.S. dollars). A year earlier, it lost $4.4 billion, or $8.37 a share.
Excluding writedowns and other unusual items, BlackBerry earned $0.01 a share in the latest quarter, unchanged from a year earlier.
Revenue fell 33.5%, to $793 million from $1.2 billion. In the latest quarter, 46% of total revenue came from hardware sales, 46% from communication services and 8% from software. BlackBerry ended the quarter with cash of $3.1 billion, or $5.88 a share. Its long-term debt of $1.7 billion is equal to 26% of its market cap.
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Excluding writedowns and other unusual items, BlackBerry earned $0.01 a share in the latest quarter, unchanged from a year earlier.
Revenue fell 33.5%, to $793 million from $1.2 billion. In the latest quarter, 46% of total revenue came from hardware sales, 46% from communication services and 8% from software. BlackBerry ended the quarter with cash of $3.1 billion, or $5.88 a share. Its long-term debt of $1.7 billion is equal to 26% of its market cap.
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METRO INC. $92 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 84.5 million; Market cap: $7.8 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.metro.ca) operates 600 grocery stores and 250 drugstores in Quebec and Ontario.
In its 2014 fiscal year, which ended September 27, 2014, Metro’s earnings rose slightly, to $460.9 million from $460.7 million in fiscal 2013. The company spent $459.7 million on share buybacks in the past year, which is why its earnings per share gained 8.5%, to $5.13 from $4.73.
Overall sales rose 1.7%, to $11.6 billion from $11.4 billion, while same-store sales gained 1.1%. Higher food prices were the main reason for these gains. As well, the company recently paid $101.6 million for 75% of privately held bakery Première Moisson, which has 23 stores and three production facilities in Quebec.
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In its 2014 fiscal year, which ended September 27, 2014, Metro’s earnings rose slightly, to $460.9 million from $460.7 million in fiscal 2013. The company spent $459.7 million on share buybacks in the past year, which is why its earnings per share gained 8.5%, to $5.13 from $4.73.
Overall sales rose 1.7%, to $11.6 billion from $11.4 billion, while same-store sales gained 1.1%. Higher food prices were the main reason for these gains. As well, the company recently paid $101.6 million for 75% of privately held bakery Première Moisson, which has 23 stores and three production facilities in Quebec.
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LOBLAW COMPANIES LTD. $59 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 412.8 million; Market cap: $24.4 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.loblaw.ca) is Canada’s largest food retailer, with about 1,050 stores.
The company is benefiting from sales of other products beyond food. For example, in 2006 it launched its popular Joe Fresh line of clothing, shoes and accessories.
Loblaw sells these goods in over 330 of its supermarkets and through 17 stand-alone stores in the U.S. and Canada. It plans to open 140 more Joe Fresh stores outside of North America in the next four years.
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The company is benefiting from sales of other products beyond food. For example, in 2006 it launched its popular Joe Fresh line of clothing, shoes and accessories.
Loblaw sells these goods in over 330 of its supermarkets and through 17 stand-alone stores in the U.S. and Canada. It plans to open 140 more Joe Fresh stores outside of North America in the next four years.
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ROYAL BANK OF CANADA $76 (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $106.4 billion; Price-to-sales ratio: 3.4; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.rbc.com) is selling its private banking and wealth management businesses in Switzerland. Together, these operations have around $2 billion of assets. The sale is part of Royal’s plan to sell less important overseas operations. It will use the proceeds to expand its wealth management businesses in more profitable regions, including North America, the U.K. and Asia. Royal Bank is a buy.
TRANSCANADA CORP. $53 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 708.6 million; Market cap: $37.6 billion; Price-to-sales ratio: 3.8; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.transcanada.com) could get a boost if it receives approval for two major pipelines that would pump crude oil from Alberta’s oil sands to the U.S. Gulf Coast (Keystone XL) and to refineries in Eastern Canada (Energy East).
Even if it has to abandon these projects, TransCanada’s crude volumes should remain steady, despite lower oil prices.
As well, the company could unlock some of its value by transferring assets to partly controlled affiliates. These transactions, called “drop downs,” help the parent company free up cash for new projects. Activist investors could also pressure TransCanada to spin off its electrical-power operations as a separate firm.
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Even if it has to abandon these projects, TransCanada’s crude volumes should remain steady, despite lower oil prices.
As well, the company could unlock some of its value by transferring assets to partly controlled affiliates. These transactions, called “drop downs,” help the parent company free up cash for new projects. Activist investors could also pressure TransCanada to spin off its electrical-power operations as a separate firm.
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CANADIAN NATIONAL RAILWAY CO. $78 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 809.3 million; Market cap: $63.1 billion; Price-to-sales ratio: 5.5; Dividend yield: 1.3%; TSINetwork Rating: Above Average; www.cn.ca) has several key advantages that put it in a strong position to profit from an improving North American economy.
For example, it’s the only railway that accesses all three coasts: Atlantic, Pacific and the Gulf of Mexico. As well, CN owns an exclusive line that lets it avoid major bottlenecks in the Chicago area.
To top it off, lower fuel costs will enhance CN’s industry-leading efficiency rates. Crude-by-rail and fracking sand volumes should also remain steady, even with recent oil price drop.
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For example, it’s the only railway that accesses all three coasts: Atlantic, Pacific and the Gulf of Mexico. As well, CN owns an exclusive line that lets it avoid major bottlenecks in the Chicago area.
To top it off, lower fuel costs will enhance CN’s industry-leading efficiency rates. Crude-by-rail and fracking sand volumes should also remain steady, even with recent oil price drop.
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CANADIAN PACIFIC RAILWAY LTD. $211 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 170.1 million; Market cap: $35.9 billion; Price-to-sales ratio: 5.6; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.cpr.ca) has soared 205.8% since we named it our top pick in 2012. The gain is largely due to CP’s plan to cut costs and improve its efficiency with new locomotives, better tracks, and software that optimizes train loads and speeds. CP Rail is a buy.
TECK RESOURCES LTD. $14 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 566.8 million; Market cap: $7.9 billion; Price-to-sales ratio: 1.0; Dividend yield: 6.4%; TSINetwork Rating: Average; www.teck.com) is down 62.2% since we made it our #1 pick for 2013.
That’s mainly because slowing industrial activity, mainly in Asia, has hurt demand for Teck’s metallurgical coal, a key ingredient in steelmaking. Lower oil prices have also dampened the outlook for its 20.0%-owned Fort Hills oil sands project in Alberta, which is scheduled to start up in late 2017.
The company has a long history of controlling its costs, which should help it stay profitable until coal and oil prices improve. It has also pledged to maintain its annual $0.90-a-share dividend, which yields 6.4%.
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That’s mainly because slowing industrial activity, mainly in Asia, has hurt demand for Teck’s metallurgical coal, a key ingredient in steelmaking. Lower oil prices have also dampened the outlook for its 20.0%-owned Fort Hills oil sands project in Alberta, which is scheduled to start up in late 2017.
The company has a long history of controlling its costs, which should help it stay profitable until coal and oil prices improve. It has also pledged to maintain its annual $0.90-a-share dividend, which yields 6.4%.
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CAE INC. $15 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.3 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.9%; TSINetwork Rating: Average; www.cae.com) is the world’s leading maker of flight simulators, which help teach airline and military pilots how to take off, land and handle a variety of emergency situations.
Since it started up in 1947, CAE has sold over 1,500 simulators to 140 airlines. It currently controls 70% of the global flight simulator market.
To cut its reliance on simulator sales, which tend to rise and fall with the overall economy, CAE began instructing pilots in 2001. It now operates around 50 pilot-training centres in over 25 countries. These facilities also train cabin crews and maintenance personnel.
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Since it started up in 1947, CAE has sold over 1,500 simulators to 140 airlines. It currently controls 70% of the global flight simulator market.
To cut its reliance on simulator sales, which tend to rise and fall with the overall economy, CAE began instructing pilots in 2001. It now operates around 50 pilot-training centres in over 25 countries. These facilities also train cabin crews and maintenance personnel.
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