The Bank of Canada’s latest business outlook survey found Eastern and Central Canadian companies are planning to invest more, particularly in the manufacturing industry, which points to optimism in Canadian business sector despite oil patch woes. Today, we have picked seven manufacturing stocks of Canada that have reported high capital expenditure (>C$10 million), strong asset turnover ratio (>1.0) during their latest reported quarter. Moreover these stocks are expected to report decent operating profit margins for the period Q4’FY14. During the past one month, majority of the stocks have registered price gains with daily average trading volumes in excess of 100,000.
|
Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
Average Volume |
Price Change (1-Month) |
Capex for latest reported quarter (C$ Mn) |
Asset Turnover Ratio |
Operating Profit Margin for Q4’FY14E |
|
Canfor Corp |
CFP |
TSX |
3,515.7 |
25.97 |
498,432 |
-9.8% |
63.5 |
1.2 |
11.7% |
|
Martinrea International Inc |
MRE |
TSX |
783.0 |
9.22 |
366,233 |
-5.6% |
48.9 |
1.7 |
3.9% |
|
Maple Leaf Foods Inc |
MFI |
TSX |
2,726.6 |
19.28 |
359,057 |
1.5% |
48.0 |
1.1 |
0.6% |
|
Cascades Inc |
CAS |
TSX |
677.3 |
7.20 |
179,700 |
5.9% |
43.0 |
1.0 |
4.0% |
|
Interfor Corp |
IFP |
TSX |
1,234.5 |
18.50 |
637,594 |
-12.9% |
22.4 |
1.5 |
5.2% |
|
Celestica Inc* |
CLS |
TSX |
2,395.2 |
13.70 |
1,104,163 |
3.2% |
16.6 |
2.2 |
2.8% |
|
Cott Corp |
BCB |
TSX |
859.0 |
9.25 |
111,699 |
18.7% |
10.8 |
1.3 |
2.4% |
Source: Bloomberg
* Fiscal year ends Jan’2015
Company Description
Canfor Corp (TSX: CFP)
Canfor Corporation is an integrated forest products company that produces and supplies SPF lumber, oriented strand board, plywood, kraft pulp and kraft paper. The company also produces remanufactured lumber products, hardboard paneling and special baled fibre products. In addition, Canfor produces kraft pulp and newsprint through a joint venture partnership with Howe Sound Pulp and Paper.
Martinrea International Inc (TSX: MRE)
Martinrea International Inc. manufactures metal parts, assemblies, and systems focused on the automotive/industrial sectors. The company also manufactures automotive fluid management systems, tubing, tooling, and other products.
Maple Leaf Foods Inc (TSX: MFI)
Maple Leaf Foods Inc. manufactures and sells a variety of food products. The company’s products include fresh and prepared meats, poultry, flours, fresh and frozen bakery products, pasta, seafood, and pet and animal feeds. These products are primarily sold to retail, food service, wholesale, agricultural and industrial customers worldwide.
Cascades Inc (TSX: CAS)
Cascades Inc. produces paper and packaging products. The company manufactures converts, and markets specialty products, including boxboard, fine papers, tissue paper, and containerboard. Cascades and its subsidiaries operate in Canada, the United States, France, Sweden, Germany, and Great Britain.
Interfor Corp (TSX: IFP)
Interfor Corporation harvests timber and manufactures and markets lumber products, logs, and wood chips. The company has logging operations and sawmills in Western Canada.
Celestica Inc (TSX: CLS)
Celestica Inc. designs and manufactures electronic components. The company’s products and services include design, prototyping, printed circuit assembly, full system assembly, power converters, memory packages and repair services. Celestica markets its products and services to original equipment manufacturers, primarily in the computer and communications sector.
Cott Corp (TSX: BCB)
Cott Corporation produces and distributes a variety of premium beverages. The Company’s beverages include soft drinks, new age beverages, iced teas, juice drinks, sports drinks, and bottled water. Cott operates manufacturing facilities in Canada, the United States, the United Kingdom. The company markets its beverages to retailers worldwide.
