Author Topic: Canada's Great Companies  (Read 3282 times)

KCLarkin

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Canada's Great Companies
« on: April 30, 2020, 07:33:34 AM »
I did an A-Z search for all Canadian stocks I consider "investment grade" in Canada (criteria below). I found 47 companies worth further investigation:

Royalty:
LULU
BYD.TO
ATD-B.TO
DOL.TO
CSU.TO

Nobility:
CCL-B.TO
MTY.TO
GIL.TO
QSR.TO
GIB-A.TO
BMO.TO
CM.TO
BNS.TO
OTEX.TO
CTC-A.TO
SJ.TO
RCH.TO
TD.TO
SAP.TO
RY.TO
TIH.TO
T.TO
ENGH.TO
WPK.TO
X.TO
CP.TO
CNR.TO
BCE.TO
STN.TO
RCI-B.TO
MRU.TO
RBA.TO

Jesters
GOOS.TO
RX.V
CGY.TO
AND.TO
SIS.TO
DSG.TO
CIGI.TO
ATZ.TO
PBH.TO
GUD.TO
BAM-A.TO
FSV.TO
JWEL.TO
SHOP.TO
KXS.TO
REAL.TO

Criteria:
Royalty - long history of >15% EPS growth. World class returns.
Nobility - long history of steady growth
Jesters - More speculative companies. Growth companies, small caps, shorter history, less earnings stability.

Excludes:
Oil & Gas
Mining
Cyclicals (auto, airlines especially)
Pipelines (some of these are probably worthy of nobility status)
Utilities
REITs and income trusts
Financials (except Big 5 banks)
Most small caps (looking for companies with predictable earnings)
Most companies on the venture exchange
Marijuana stocks
Biotechs (these are almost always dumpster fires in Canada)

h/t to Shalab who started a similar thread here:
https://www.cornerofberkshireandfairfax.ca/forum/general-discussion/great-canada-based-companies/

My list is meant to be more comprehensive, but also excludes many of the commodity and cyclical companies discussed on Shalab's thread.


« Last Edit: April 30, 2020, 01:19:31 PM by KCLarkin »


petec

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Re: Canada's Great Companies
« Reply #1 on: April 30, 2020, 07:37:34 AM »
RBA.
FFH MSFT BRK BAM ATCO LNG IHG TFG CGT DC/A

KCLarkin

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Re: Canada's Great Companies
« Reply #2 on: April 30, 2020, 07:39:41 AM »
Are there any great companies I missed? There were a few stocks on the bubble (QIS, Loblaw's, Enbridge, insurers) that didn't make the cut. I turned up only two companies that I wasn't familiar with:

Jamieson Wellness - Leader in vitamins and other natural products
Andlauer Healthcare - Leader in healthcare distribution and logistics

KCLarkin

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Re: Canada's Great Companies
« Reply #3 on: April 30, 2020, 07:42:24 AM »
RBA.

I excluded due to modest cyclicality, but probably deserves a spot. Added.

longlake95

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Re: Canada's Great Companies
« Reply #4 on: April 30, 2020, 07:43:47 AM »
TFII - Transforce. Best of breed in a mediocre industry. Great outsider CEO.

KCLarkin

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Re: Canada's Great Companies
« Reply #5 on: April 30, 2020, 08:05:31 AM »
Attached are the stocks still down at least 20% from 52 week highs. A few potential opportunities on that list:

MTY -64%. A collection of third tier franchise restaurants, with a heavy tilt to mall food courts. Legendary CEO recently retired. Seems like a pass to me.
GIL -63%. Low cost producer of t-shirts etc. Imprintables market is dead due to bans on large gatherings. Very interesting.
Big 5 banks.
Canadian Tire -37%. Don't love it, but it is very cheap and very close to an essential service in Canada.
Colliers -37%. Commercial real estate. I'm not too familiar with it, but I know it has fans here.



KCLarkin

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Re: Canada's Great Companies
« Reply #6 on: April 30, 2020, 08:06:03 AM »
TFII - Transforce. Best of breed in a mediocre industry. Great outsider CEO.

Agree with your assessment, but earnings are too lumpy.

SharperDingaan

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Re: Canada's Great Companies
« Reply #7 on: April 30, 2020, 08:33:42 AM »
You might want to re-think the purpose of this list.
Simply because a great many of Canada's best companies are private, and at least as big as some of those on this list. Obvious omissions are Irving Oil, McCains, Power Corp, Portland Holdings, Mannix, Jim Patterson Group, etc. You buy the shares of their major suppliers, or you work for them.

SD

KCLarkin

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Re: Canada's Great Companies
« Reply #8 on: April 30, 2020, 09:18:43 AM »
You might want to re-think the purpose of this list.
Simply because a great many of Canada's best companies are private, and at least as big as some of those on this list. Obvious omissions are Irving Oil, McCains, Power Corp, Portland Holdings, Mannix, Jim Patterson Group, etc. You buy the shares of their major suppliers, or you work for them.

I'm only looking for publicly traded companies. Not a fan of Canada's public conglomerates. I made a small exception for BAM, but it is in the speculative pile.

clutch

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Re: Canada's Great Companies
« Reply #9 on: April 30, 2020, 09:20:12 AM »
KEG-UN.TO. Although it's real murky what the future holds for the restaurant business.