GuruFocus released today the first phase of its
global stock coverage
: Canadian stocks. Subscribers to the
Canadian Premium Membership
can get all the data about companies trading on Canada's stock
To introduce the new feature, here is a look at Canada's most
predictable, undervalued companies.
These companies are all found under the
Undervalued Predictable Screener
by checking "Canada" and unchecking "USA." UK/Ireland, Europe,
Asia and Oceania are all forthcoming.
According to the screener, the stocks that are the most
predictable and undervalued in the nation of Canada are: Computer
Modeling Group Ltd. (
), National Bank of Canada (
), Metro Inc. (
) and Bank of Nova Scotia (
Predictability rankings are decided based on the predictability
of companies based on the consistency of their revenue per share
and EBITDA (earnings before interest, tax, depreciation and
amortization) per share over the past ten fiscal years, and study
the correlation between the stock performances and the
predictability of the business.
A business that is predictable is one of
's top five criteria for businesses he invests in.
Computer Modelling Group Ltd. (
Based in Calgary, Computer Modelling Group is the world's largest
independent provider of reservoir simulation software, with over
525 oil and gas companies and consulting firms in more than 55
Computer Modelling Group is the only Canadian stock that
GuruFocus grants a five-star predictability ranking. The company
has the following ten-year per-share growth rates: 19.1 percent
for revenue, 29.5 percent for EBITDA, 39.3 percent for free cash
flow and 17.6 percent for book value.
TSX:CMG data byGuruFocus.com
Since the stock went public in 2000, it has gained 24,578
In the company's second quarter of 2013, ended Sept. 30, 2012,
the company again increased revenue and net income, by 34 percent
and 24 percent, respectively, over the previous year. CMG derives
its revenue primarily from software license sales, as well as
professional services. Revenue increased in the second quarter
due to a growth in software license sales driven by
annuity/maintenance and perpetual license sales growth, as well
as slightly increased fees for professional services.
CMG has a P/E of 33.9, P/B of 18.25 and P/S of
CMG's midday trading price is $22.21, compared to its discounted
cash flow valuation of $22 and discount earning valuation of $18.
National Bank of Canada (
National Bank offers financial services to its core market and
specialized services elsewhere in the world, and securities
brokerage, insurance, wealth management, and mutual fund and
retirement plan management through its subsidiaries. It is the
sixth largest Canadian bank, with 451 branches and $178 billion
GuruFocus gives National Bank of Canada a predictability rank of
4 stars. It has the following 10-year per-share growth rates: 5.7
percent for revenue, 8.6 percent for EBITDA, 0 for free cash
flow, and 8.7 percent for book value.
TSX:NA.PR.Q data byGuruFocus.com
Since Nov. 7, the bank's stock has gained almost 5 percent.
For the fourth quarter 2012, ended Oct. 31, 2012, National Bank
of Canada had net income of $351 million, compared to $292
million a year previously, and earnings per share of $1.97
compared to $1.62. Total revenues increased 6 percent to $1.24
billion, from $1.17 billion (all in Canadian dollars).
The continued growth resulted from personal loan growth,
financial market trading, and its acquisitions in wealth
NBC has a P/E of 2.79, P/B of 0.628 and P/S of X
The company's midday trading price is $26.54, compared to its
discount cash flow valuation of $276 and discount earning
valuation of $96.
Metro Inc. (
Metro operates more than 600 food stores and more than 250
drugstores, with annual sales of over $11 billion and 65,000
employees in Quebec and Ontario.
GuruFocus gives Metro Inc. a predictability rank of 4 stars. The
company has the following 10-year growth rates: 9 percent for
revenue, 12.5 percent for EBITDA, 14.9 percent for free cash flow
and 15 percent for book value.
TSX:MRU data byGuruFocus.com
Since 2000, its stock has gained 581 percent.
In its fourth quarter ended Sept. 29, 2012, Metro had an 11
percent year-over-year increase in sales to $2.94 billion and a
75.9 percent net earnings increase to $154.1 million, or $1.46
per share. Same-store sales increased 1.1 percent.
Metro has a P/E of 12.7 percent, P/B of 2.37 and P/S of 0.524.
Its midday trading price of $61.86 compares to its discount cash
flow valuation of $69 and discount earning valuation of $71.
Bank of Nova Scotia (
Scotiabank is a multinational financial services provider with
four business lines: Canadian banking, international banking,
global banking and markets and global wealth management. It has
19 million customers in more than 55 countries.
GuruFocus awards BNS a business predictability rank of 4 stars.
The company has the following ten-year per-share growth rates: 5
percent for revenue, 5.8 percent for EBITDA, 0 for free cash flow
and 11.4 percent for book value.
TSX:BNS data byGuruFocus.com
Since 2000, the stock has gained 271 percent.
In the company's fourth quarter, ended Oct. 31, 2012, BNS
reported a 31 percent increase in net income to $1.52 billion, a
22 percent increase in diluted EPS of $1.18 and a 15 percent
increase in revenue to $4.94 billion. The bank saw revenue
increases in each of its three categories: net interest income,
net fee and commission revenues and trading revenues. Net income
improved as the bank brought in higher revenues, including those
from acquisitions, and earning assets and trading revenues
BNS has a P/E of 11, P/B of 1.7 and P/S of 2.5.
Its trading price of $57.64 in midday trading compares to a
discount cash flow valuation of $56 and discount earning
valuation of $70.
See more undervalued, predictable companies from Canada here.
Also become a subscriber to GuruFocus' new Canadian stock
coverage or coverage of other regions here.About GuruFocus:
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