Interest coverage ratio measures the company’s ability to meet its interest payments and companies with high ratios can easily pay interest expenses on outstanding debt, thereby insulating themselves from default risk. Today, we have picked eight industrial stocks of Canada that have reported decent interest coverage ratios (>1.5) during their trailing twelve months period. Moreover these stocks are expected to report strong sales growth for the period Q4’FY14. During the past one month, some 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) |
TTM Interest Coverage Ratio |
Sales Growth for Q4’FY14E |
|
Ritchie Bros Auctioneers Inc |
RBA |
TSX |
3,401.9 |
31.65 |
222,373 |
3.8% |
13.0x |
38.2% |
|
WSP Global Inc |
WSP |
TSX |
3,069.7 |
34.44 |
327,892 |
-1.9% |
11.1x |
73.0% |
|
TransForce Inc |
TFI |
TSX |
2,975.3 |
28.94 |
499,230 |
-1.6% |
7.2x |
4.7% |
|
Wajax Corp |
WJX |
TSX |
435.4 |
25.95 |
136,705 |
-13.6% |
6.5x |
5.6% |
|
ATS Automation Tooling Systems Inc |
ATA |
TSX |
1,317.3 |
14.42 |
390,191 |
-3.0% |
6.1x |
31.0% |
|
Bombardier Inc |
BBD/B |
TSX |
4,958.7 |
2.77 |
22,478,550 |
-30.2% |
4.3x |
20.2% |
|
CAE Inc |
CAE |
TSX |
4,048.9 |
15.26 |
1,196,222 |
0.7% |
3.6x |
8.5% |
|
EnerCare Inc |
ECI |
TSX |
1,334.9 |
14.53 |
631,098 |
-0.6% |
1.6x |
60.2% |
Source: Bloomberg
Company Description
Ritchie Bros Auctioneers Inc (TSX: RBA)
Ritchie Bros. Auctioneers Incorporated auctions industrial equipment, operating through various locations around the world. The company sells, through unreserved public auctions, used and unused industrial equipment, including equipment used in the construction, transportation, mining, forestry, petroleum, and agricultural industries.
WSP Global Inc (TSX: WSP)
WSP Global Inc. offers engineering services. The company offers professional services in the areas of construction, energy, the environment, mining, municipal infrastructure, project management, telecommunications, and transportation.
TransForce Inc (TSX: TFI)
TransForce, Inc. offers transportation and logistics services. The company offers less-than-truckload and parcel delivery, fleet management and personnel services, and specialized truckload and truckload delivery services.
Wajax Corp (TSX: WJX)
Wajax Corp sells, rents, and services new and used equipment for construction, mining, forestry, energy and material handling. The company is a multiline distributor for Hitachi, JCB, Bell, Hyster, Palfinger and others. The company also sells and services power systems and industrial components.
ATS Automation Tooling Systems Inc (TSX: ATA)
ATS Automation Tooling Systems, Inc. is a custom engineer and producer of industrial automated manufacturing systems. The company also manufactures related precision components under long-term contracts for customers in the automotive and other industries. ATS’ products are sold throughout the world.
Bombardier Inc (TSX: BBD/B)
Bombardier Inc. operates in the fields of aerospace, rail transportation equipment, financial services, and services related to its products and core business. The company operates plants in North America, Europe, and Asia.
CAE Inc (TSX: CAE)
CAE, Inc. provides simulation and modeling technologies and integrated training services for civil aviation and defense customers worldwide.
EnerCare Inc (TSX: ECI)
EnerCare Inc. owns and rents water heaters to homeowners. The company, through its subsidiaries, also offers water metering contracts in condominiums and apartment suites. EnerCare provides its services throughout Canada.
