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Summary
- Shares of Toromont have soared by 32.79 per cent in the last six months.
- Toromont’s stock has surged 22.20 per cent year-to-date (YTD).
- goeasy’s stock has swelled over 231 per cent since the pandemic led market crash on March 24.
Stock markets are recovering from the pandemic-led breakdown. The S&P/TSX Composite Index has seen a correction of nearly 8 per cent in the last six months. So, it is normal for investors to stay conscious of these unprecedented uncertainties.
Some investors may be anticipating a further collapse and thinking about not parking funds in the market. On the other hand, some stocks are in full-recovery mode and outperforming the benchmark index.
Recovery stocks such as Toromont Industries Ltd (TSX:TIH) and goeasy Ltd (TSX:GSY) are trading well above their pre-pandemic marks and sustaining through the second COVID-19 wave. Let us take a closer look at their market fundamentals and stock performance.
Toromont Industries Ltd. (TSX:TIH)
Current Stock Price: C$ 86.62
Toromont Industries Ltd operates in two business segments: Equipment Group and CIMCO. The company generates most of its revenue from caterpillar construction equipment and power systems in the provinces of Ontario, Manitoba, Newfoundland, Labrador, and Nunavut. CIMCO provides solutions for the design, engineering, fabrication, and installs recreational refrigeration and process systems across North America.
The stock has recovered 58.90 per cent since the pandemic led market crash on March 24. In the last six months, the stock has increased by 32.79 per cent. Shares of Toromont have surged 22.20 per cent year-to-date (YTD).
Its current market cap stands at C$ 7.124 billion.
Toromont is a part of TMX’s top industrial stocks, a list of stocks that have outperformed their peers across the TSXV and the TSX in the last 30 days. It is ranked on TMX’s top price performer stocklist that has stocks with the largest price gains in the last 30 days.
As per TMX data, Toromont’s price-to-book (P/B) ratio is 4.559, and the price-to-cash flow (P/CF) ratio is 17.40. The industrial stock offers a positive return on equity (ROE) of 17.66 per cent, and positive return on assets (ROA) of 7.59 per cent. The company’s total debt-to-earnings ratio is 0.49. Its current price-to-earnings ratio is 26.90.
Toromont holds a current dividend yield of 1.432 per cent. It pays a quarterly dividend of C$ 0.31 per share. The dividend growth for three-year is 14.28 per cent, and the five-year dividend growth is 11.47 per cent.
The company registered revenues of C$ 921.7 million in third quarter of 2020, down five per cent year-over-year due to pandemic-related restrictions. However, booking activity and backlogs continued a strong surge during Q2 of 2020.
Toromont’s operating income was down marginally in the third quarter to C$ 112.9 million. Net earnings slumped by 3 per cent YoY to C$ 77.4 million.
goeasy Ltd (TSX:GSY)
Current Stock Price: C$ 77.56
goeasy Ltd offers financial services to lease furniture, electronics, computers, and appliances. It sells household furnishing products as well as offers consumer loans through its brands ‘easyhome’ and ‘easyfiancial’.
The financial stock has regained over 231 per cent since the pandemic led market crash on March 24. In the last six months, the stock has surged by 61.58 per cent. Shares of Toromont have increased by 9.71 per cent year-to-date (YTD).
Its current market cap stands at C$ 1.082 billion.
The credit services provider has made it to TMX’s top financial services that have outperformed their peers and the markets (TSXV and TSX) in the last 30 days. goeasy has also been placed on TMX’s top price performer stocks with the largest price gains in the last 30 days.
As per the TMX website, goeasy’s price-to-book (P/B) ratio is 3.274, and its price-to-cash flow (P/CF) ratio is 6.90. The stock has a positive return on equity (ROE) of 20.71 per cent, and a positive return on assets (ROA) of 5.52 per cent. The company’s total debt-to-earnings ratio is 2.74. Its current price-to-earnings ratio is 12.70.
goeasy’s distributed quarterly cash dividend of C$0.45 per common share. The dividend will be paid to its shareholders (as on December 25, 2020) on January 8, 2021.
The dividend growth for three-year is 27.48 per cent, and the five-year dividend growth is 29.90 per cent.
The company reported a loan portfolio of C$ 1.18 billion in the third quarter of 2020, up 14 per cent compared to Q3 2019. The creditor posted a total liquidity of C$ 250 million in Q3 2020, an increase of 16 per cent compared to Q3 2019. The company reported a return on equity of 34.7 per cent in the third quarter of 22020, soared from 24.1 per cent in Q3 2019.
