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Summary
- A freight airline stock has maintained a decade-long winning spree and reaped 2254 per cent gains. The cargo firm has also paid a steady dividend to its unitholders throughout the decade.
- Stocks of an e-commerce company have returned 4143 per cent since its listing in 2015.
- Both stocks have also added triple-digit growth in 2020.
This decade has seen an explosion of e-commerce and social media apps, led by fast-paced innovation supported by tech companies. Today most urban population buy their daily use items via apps on smartphones and other internet of things (IoT) devices. During festive seasons, e-commerce companies received an overwhelmed number of orders that contributed to their rapid growth. In the year of the pandemic, this growth further accelerated amid stay-at-home and social distancing rules. Transport and logistic companies, which helped the smooth operation of the e-commerce firms, also witnessed an explosive growth.
As 2020 draws to an end and we sit on the threshold of another new year (hopefully pandemic-free), let us visit two stocks that delivered four-digit growth this decade:
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Cargojet Inc. (TSX:CJT)
The freight airline units have added over 2254 per cent gains in the last ten years. Stocks of cargo airline has surged 110 per cent this year. The air transport firm consistently distributed dividends throughout this decade. The company is currently paying quarterly dividend of C$ 0.234 per common share, with a present dividend yield of 0.433 per cent.
Cargojet’s price-to-book (P/B) ratio is 17.03. The stock has a debt-to-equity (D/E) ratio of 2.73 and a price-to-cashflow (P/CF) ratio of 13.60. Its current market cap is approximately C$ 3.37 billion, as per data on the TMX portal.
The company recorded total revenue of C$ 162.3 million in the third quarter of 2020, against C$ 117.4 million in the same period the prior year. The air cargo company also posted an adjusted cashflow of C$ 59.3 million in the quarter.
Shopify Inc. (TSX:SHOP)
Shopify, often touted as Canada’s answer to Amazon, is the largest company on the Toronto Stock Exchange by market cap.
The Canadian tech giant’s scrips have swelled nearly 4143 per cent since its listing on May 24, 2015. Stocks of the e-commerce platform provider has grown by 187 per cent this year. In the last one month alone, the stock rose by 6 per cent, thus making it to TMX’s top price performers. Its current market capitalization stands at nearly C$ 164.26 billion.
The stock offers a positive return on equity of 4.37 and a return on assets of 3.69 per cent. It has a price-to-book (P/B) ratio of 22.783 and a high current price-to-cash flow (P/CF) ratio of 610.90. The stock delivers earnings per share (EPS) of C$ 2.20, as per the TMX portal.
In the third quarter of 2020, its total revenue was US$ 767.4 million, a 96 per cent rise year-over-year (YoY). Shopify’s subscription solutions generated revenue of US$ 245.3 million, an increase of 48 per cent YoY, driven by more vendors joining its e-commerce platform. Its gross profit soared 87 per cent to US$ 405.1 million in Q3 2020 versus US$ 216.7 million in Q3 2019.