price to sales ratio
CENOVUS ENERGY INC. $32 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 756.5 million; Market cap: $24.5 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.3%; TSINetwork Rating: Average; www.cenovus.com) gets about 40% of its output from its oil sands projects in Alberta. Conventional oil and natural gas wells supply the other 60%.
U.S.-based ConocoPhillips (New York symbol COP) owns 50% of Cenovus’s main Foster Creek and Christina Lake oil sands projects in Alberta. These properties produce heavy bitumen, which Cenovus ships to its 50%-owned refineries in Illinois and Texas. Phillips 66 (New York symbol PSX) owns the other 50% of these refineries. In 2013, refining accounted for 66% of Cenovus’s revenue and 40% of its earnings.
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U.S.-based ConocoPhillips (New York symbol COP) owns 50% of Cenovus’s main Foster Creek and Christina Lake oil sands projects in Alberta. These properties produce heavy bitumen, which Cenovus ships to its 50%-owned refineries in Illinois and Texas. Phillips 66 (New York symbol PSX) owns the other 50% of these refineries. In 2013, refining accounted for 66% of Cenovus’s revenue and 40% of its earnings.
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DUNDEE CORP. $17 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 54.1 million; Market cap: $919.7 million; Price-to-sales ratio: 2.4; No dividends paid; TSINetwork Rating: Average; www.dundeecorp.com) owns businesses in the wealth management, real estate, natural resource and agriculture industries.
The company lost $92.6 million, or $1.88 a share, in 2013. That’s a big drop from the $25.2 million, or $0.29 a share, it earned in 2012. Revenue fell 6.3%, to $200.7 million from $214.2 million.
The declines are mainly because weak commodity prices hurt the contribution of Dundee’s resource holdings. As well, fewer firms issued shares in 2013, which hurt profits at its Dundee Securities brokerage firm. The company is also spending more to expand its agriculture businesses, which further depressed results.
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The company lost $92.6 million, or $1.88 a share, in 2013. That’s a big drop from the $25.2 million, or $0.29 a share, it earned in 2012. Revenue fell 6.3%, to $200.7 million from $214.2 million.
The declines are mainly because weak commodity prices hurt the contribution of Dundee’s resource holdings. As well, fewer firms issued shares in 2013, which hurt profits at its Dundee Securities brokerage firm. The company is also spending more to expand its agriculture businesses, which further depressed results.
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TRANSCANADA CORP. $51 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 707.6 million; Market cap: $36.1 billion; Price-to-sales ratio: 3.8; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.transcanada.com) has received new long-term commitments from U.S. natural gas producers for its ANR pipeline system. Trans- Canada has now sold all of this line’s capacity.
This strong demand should prompt Trans- Canada to expand the ANR line over the next few years. That would let it handle rising production at the Utica and Marcellus shale gas fields in New York State and Pennsylvania.
TransCanada is a buy....
This strong demand should prompt Trans- Canada to expand the ANR line over the next few years. That would let it handle rising production at the Utica and Marcellus shale gas fields in New York State and Pennsylvania.
TransCanada is a buy....
CANADA BREAD CO. LTD. $73 (Toronto symbol CBY; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 25.4 million; Market cap: $1.9 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.canadabread.ca) is Canada’s second-largest producer of fresh and frozen baked goods, after Weston Bakery.
Shareholders recently approved a $72.00-a-share takeover offer from Mexican bakery giant Grupo Bimbo SAB. Competition regulators in Canada and the U.S. have also approved the deal.
Canada Bread’s shares are trading slightly higher than the bid. That’s because the deal lets the company keep paying quarterly dividends of up to $0.75 a share until Grupo Bimbo completes the takeover, probably by June 30, 2014. Before the deal, Canada Bread paid quarterly dividends of $0.50 a share.
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Shareholders recently approved a $72.00-a-share takeover offer from Mexican bakery giant Grupo Bimbo SAB. Competition regulators in Canada and the U.S. have also approved the deal.
Canada Bread’s shares are trading slightly higher than the bid. That’s because the deal lets the company keep paying quarterly dividends of up to $0.75 a share until Grupo Bimbo completes the takeover, probably by June 30, 2014. Before the deal, Canada Bread paid quarterly dividends of $0.50 a share.
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BANK OF MONTREAL $75 (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 644.7 million; Market cap: $48.4 billion; Price-to-sales ratio: 2.3; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.bmo.com) earned $787 million from its U.S. banking operations (or 27% of the total) in the year ended October 31, 2013.
The bank continues to integrate Milwaukee-based Marshall & Ilsley, which it bought in 2011. The move doubled the size of its U.S. retail banking business. Bank of Montreal has already cut this division’s annual costs by $400 million, which should help it meet its goal of raising this business’s earnings to $1 billion in 2015.
Bank of Montreal is a buy....
The bank continues to integrate Milwaukee-based Marshall & Ilsley, which it bought in 2011. The move doubled the size of its U.S. retail banking business. Bank of Montreal has already cut this division’s annual costs by $400 million, which should help it meet its goal of raising this business’s earnings to $1 billion in 2015.
Bank of Montreal is a buy....
IGM FINANCIAL INC. $52 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 252.4 million; Market cap: $13.1 billion; Price-to-sales ratio: 4.9; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www. igmfinancial.com) is Canada’s largest independent mutual fund company. Power Financial owns 58.6% of IGM.
As of December 31, 2013, IGM had $131.8 billion of assets under management, up 9.2% from $120.7 billion at the end of 2012. The company’s fee income rises and falls with the value of the securities it manages, so its revenue and earnings gain when the price of these assets rises.
In 2013, IGM’s earnings rose 2.3%, to $763.5 million from $746.4 million in 2012. Per-share earnings gained 3.4%, to $3.02 from $2.92, on fewer shares outstanding. Revenue for the year increased 3.7%, to $2.7 billion from $2.6 billion. Sales of mutual funds rose 22.1%, while fund redemptions fell 33.7%.
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As of December 31, 2013, IGM had $131.8 billion of assets under management, up 9.2% from $120.7 billion at the end of 2012. The company’s fee income rises and falls with the value of the securities it manages, so its revenue and earnings gain when the price of these assets rises.
In 2013, IGM’s earnings rose 2.3%, to $763.5 million from $746.4 million in 2012. Per-share earnings gained 3.4%, to $3.02 from $2.92, on fewer shares outstanding. Revenue for the year increased 3.7%, to $2.7 billion from $2.6 billion. Sales of mutual funds rose 22.1%, while fund redemptions fell 33.7%.
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GREAT-WEST LIFECO INC. $30 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 999.2 million; Market cap: $30.0 billion; Price-to-sales ratio: 1.2; Dividend Yield: 4.1%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is one of Canada’s largest insurance companies, with $758.3 billion of assets under administration. It also offers mutual funds, retirement planning and wealth management. Power Financial (Toronto symbol PFC) owns 67.0% of Great-West.
The company continues to benefit from its recent $1.75-billion purchase of Irish Life Group, Ireland’s largest pension manager and life insurance provider.
If you exclude integration costs, Great-West earned $2.05 billion in 2013, including $85 million of profits from Irish Life. The latest earnings are also up 5.4% from $1.95 billion in 2012. Due to more shares outstanding, earnings per share rose 2.9%, to $2.11 from $2.05.
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The company continues to benefit from its recent $1.75-billion purchase of Irish Life Group, Ireland’s largest pension manager and life insurance provider.
If you exclude integration costs, Great-West earned $2.05 billion in 2013, including $85 million of profits from Irish Life. The latest earnings are also up 5.4% from $1.95 billion in 2012. Due to more shares outstanding, earnings per share rose 2.9%, to $2.11 from $2.05.
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THOMSON REUTERS CORP. $38 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 815.8 million; Market cap: $31.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.thomsonreuters.com) gets 55% of its revenue by selling news and information to professionals in the banking industry. The remaining 45% comes from providing specialized information products to clients in the legal, accounting and scientific research fields.
Thomson earned $137 million, or $0.16 a share, in 2013 (all amounts except share price and market cap in U.S. dollars). That’s down sharply from $2.0 billion, or $2.39 a share, in 2012.
Financial institutions continue to cut their spending on information products in the wake of the 2008 credit crisis. In response, Thomson is cutting jobs and eliminating less-profitable products.
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Thomson earned $137 million, or $0.16 a share, in 2013 (all amounts except share price and market cap in U.S. dollars). That’s down sharply from $2.0 billion, or $2.39 a share, in 2012.
Financial institutions continue to cut their spending on information products in the wake of the 2008 credit crisis. In response, Thomson is cutting jobs and eliminating less-profitable products.
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LOBLAW COMPANIES LTD. $46 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 412.5 million; Market cap: $19.0 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.loblaw.ca) has completed its acquisition of Shoppers Drug Mart, which operates 1,253 drugstores across Canada.
Loblaw paid $12.4 billion, consisting of $6.6 billion in cash and $5.8 billion in shares. Shoppers shareholders now own 29% of the combined company.
In all, the firm will have $43 billion of annual revenue and $3 billion of gross earnings. Combining marketing and distribution should save $100 million in the first year and $300 million annually by the end of the third year.
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Loblaw paid $12.4 billion, consisting of $6.6 billion in cash and $5.8 billion in shares. Shoppers shareholders now own 29% of the combined company.
In all, the firm will have $43 billion of annual revenue and $3 billion of gross earnings. Combining marketing and distribution should save $100 million in the first year and $300 million annually by the end of the third year.
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BLACKBERRY LTD. $8.66 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 526.6 million; Market cap: $4.6 billion; Price-to-sales ratio: 0.5; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) lost $711 million, or $1.35 a share, in the fiscal year ended March 1, 2014 (all amounts except share price and market cap in U.S. dollars). A year earlier, it lost $317 million, or $0.60 a share.
Revenue fell 38.5%, to $6.8 billion from $11.1 billion, mainly due to slow demand for its new smartphones. Last year, the company removed several buttons from some of its devices as part of the switch to its new BlackBerry 10 operating system. That alienated many of its users. However, as part of its new turnaround strategy, it plans to launch phones with its traditional physical keyboard.
The company’s balance sheet remains sound: its long-term debt is just $1.6 billion, and it holds cash and investments of $2.7 billion, or $5.05 a share. However, BlackBerry will probably lose money for the next year or two.
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Revenue fell 38.5%, to $6.8 billion from $11.1 billion, mainly due to slow demand for its new smartphones. Last year, the company removed several buttons from some of its devices as part of the switch to its new BlackBerry 10 operating system. That alienated many of its users. However, as part of its new turnaround strategy, it plans to launch phones with its traditional physical keyboard.
The company’s balance sheet remains sound: its long-term debt is just $1.6 billion, and it holds cash and investments of $2.7 billion, or $5.05 a share. However, BlackBerry will probably lose money for the next year or two.
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