No Profit, No Problem: 5 Small Cap Outperformers with Negative Net Income

Published:

Growth is the name of the game for up and coming junior companies, and although profit is an added bonus it is most often not a deal breaker for a small-cap investor. The companies on our list have seen its share price do well this year despite having negative net income over the last 12 months.

Uni-Select Inc. (TSX: UNS) – $46.50

Auto, Truck & Motorcycle Parts

Uni-Select Inc. (Uni-Select) is a Canada-based company engaged in the distribution of automotive replacement parts, equipment, tools and accessories. It operates in two business segments: Automotive Group Canada and Heavy Duty Group. Automotive Group Canada specializes in the distribution of automotive replacement parts, tools and accessories across Canada. Heavy Duty Group, comprised of Palmar Inc., is involved in the distribution and sale of replacement parts and accessories for heavy-duty trucks, trailers and buses, specialty tools and of wheels for all types of vehicles.

  • Market Cap: $946,757,070
  • Revenues (LTM): $2,050,255,382
  • Net Income (LTM): -$57,996,324
  • Price Change (Year to Date): 50.5%

MDC Partners Inc. (TSX: MDZ.A) – $25.84

Advertising & Marketing

MDC Partners Inc. is a provider of marketing communications services. The Company, through its subsidiaries, provides customized marketing, activation, communications and consulting services, including advertising and consumer communication services, media management and effectiveness across all channels, interactive and mobile marketing, direct marketing, database and customer relationship management, sales promotion, corporate communications, market research, data, analytics and insights, corporate identity, design and branding, social media, marketing, product and service innovation, ecommerce and other related services.

  • Market Cap: $1,261,133,284
  • Revenues (LTM): $1,420,958,572
  • Net Income (LTM): -$59,741,371
  • Price Change (Year to Date): 16.7%

Mood Media Corp. (TSX: MM) – $0.69

Advertising & Marketing

Mood Media Corporation (Mood Media) is a Canada-based company that operates an international in-store media and music retail business. It is managed as two divisions: an In-Store Media division (consisting of Mood Media Group S.A., Mood Media North America, Ltd, Muzak Holdings LLC and DMX Holdings, Inc.), and a Retail Point-of-Purchase division (consisting of Mood Entertainment). The In-Store Media division provides multi-sensory in-store media and marketing solutions to a range of customer-facing businesses in the retail, financial services, hospitality, leisure and restaurant industries.

  • Market Cap: $126,077,026
  • Revenues (LTM): $559,413,755
  • Net Income (LTM): -$117,324,649
  • Price Change (Year to Date): 32.7%

Clearwater Seafoods Inc. (TSX: CLR) – $12.56

Fishing & Farming

Clearwater Seafoods Incorporated is a vertically integrated harvester, processor and distributor of shellfish. The Company delivers wild, eco-labeled seafood, including scallops, lobster, clams, cold water shrimp, crab and ground fish. The Company offers its products to national retailers across in both branded and private label formats. The primary shellfish stocks that the Company harvests are sea and Argentine scallops, clams, lobster and cold water shrimp, which are harvested in offshore fisheries. Clearwater offers its products in Europe, North America and Asian regions.

  • Market Cap: $694,657,593
  • Revenues (LTM): $442,332,000
  • Net Income (LTM): -$19,834,000
  • Price Change (Year to Date): 58.4%

Fortress Paper Ltd. (TSX: FTP) – $4.08

Paper Products

Fortress Paper Ltd. (Fortress) is a Canada-based company that operates business through two segments: The Dissolving Pulp Segment and the Security Paper Products Segment. The Company operates its dissolving pulp business through the Fortress Specialty Cellulose (FSC) mill located in Thurso, Quebec, Canada. The mill expanded into the renewable energy generation sector with the completion of the cogeneration facility. The Company operates its Security Paper Products business through the Landqart mill located in Switzerland, where it produces banknote, passport, visa and other brand protection and security papers.

  • Market Cap: $61,098,446
  • Revenues (LTM): $295,936,000
  • Net Income (LTM): -$58,043,000
  • Price Change (Year to Date): 34.4%

Related articles

Recent articles