When a company trades at a discount to its cash balance it could imply a disconnect between its stock’s intrinsic value and the market valuation. The companies on our list today not only have more money than market capitalization but some even have a lower enterprise value than cash in the bank, which is a sign of arbitrage in the market.
Bombardier Inc. (TSX: BBD.B) – $1.55
Aerospace & Defense
Bombardier Inc. is a manufacturer of transportation equipment, including business and commercial aircraft and rail transportation equipment and systems, and is a provider of related services. The Company carries out its operations in two distinct segments: aerospace through Bombardier Aerospace (BA) and rail transportation through Bombardier Transportation (BT).
- Market Cap: $3,471,732,128
- Cash and Short Term Investments (LFQ): $4,509,251,000
- Enterprise Value: $10,997,939,628
- Total Debt (LFQ): $11,256,889,200.00
Atlantic Power Corp. (TSX: ATP) – $2.66
Electric Utilities
Atlantic Power Corporation (Atlantic Power) owns and operates a fleet of power generation assets in the United States and Canada. The Company’s power generation projects sell electricity to utilities and other commercial customers primarily under long-term power purchase agreements (PPAs). Atlantic Power’s power generation projects have an aggregate gross electric generation capacity of approximately 2,945 megawatts.
- Market Cap: $329,488,368
- Cash and Short Term Investments (LFQ): $491,895,580
- Enterprise Value: $1,637,077,168
- Total Debt (LFQ): $1,742,994,140.00
Transat AT Inc. (TSX: TRZ.B) – $7.44
Leisure & Recreation
TRANSAT AT Inc. is a Canada-based integrated tour operator that specializes in holiday travel and offers 60 destination countries. The Company owns an air carrier and provides destination services. Its key markets are sun destinations in Mexico, the Caribbean and Florida.
- Market Cap: $287,652,717
- Cash and Short Term Investments (LFQ): $515,552,000
- Enterprise Value: -$227,286,063
- Total Debt (LFQ): $0.00
Velan Inc. (TSX: VLN) – $16.43
Industrial Machinery & Equipment
Velan Inc., a Canada-based company, is a manufacturer of industrial valves. The Company is engaged in valve design, engineering solutions and manufacturing of industrial valves throughout the world. It manufactures industrial valves for use in the areas of power generation; chemical and petrochemical; oil and gas; pulp and paper; mining; liquid natural gas and cryogenics; water and waste water; marine, and ship-building industries.
- Market Cap: $103,651,653
- Cash and Short Term Investments (LFQ): $124,488,580
- Enterprise Value: $33,008,437
- Total Debt (LFQ): $48,734,620.00
Pan Orient Energy Corp. (TSXV: POE) – $1.30
Oil & Gas Exploration and Production
Pan Orient Energy Corp. is a Canada-based junior oil and gas company engaged in exploration and development of petroleum and natural gas. The Company focuses on two primary areas, which includes exploration and development in Asia, principally in Thailand and Indonesia, and heavy oilsands exploration in northern Alberta.
- Market Cap: $72,177,563
- Cash and Short Term Investments (LFQ): $73,150,000
- Enterprise Value: $16,075,402
- Total Debt (LFQ): $0.00
WesternZagros Resources Ltd. (TSXV: WZR) – $0.14
Oil & Gas Exploration and Production
WesternZagros Resources Limited (WesternZagros) is Canada-based international oil and gas company engaged in acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq. The company’s operations consists of Kurdamir Block and Garmian Block.
- Market Cap: $71,798,766
- Cash and Short Term Investments (LFQ): $180,603,622
- Enterprise Value: -$19,644,982
- Total Debt (LFQ): $93,110,412.20
Read more analyst insights from Alex Cutulenco
