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Summary
- Canada set a new record for coronavirus infections on Thursday, April 15, as the number of daily cases crossed 9,500 for the first time since the pandemic started last year.
- Canadian provinces are likely to announce a stricter lockdown to curb the spread of the virus.
- In the anticipation of such an event, Canadians may soon resort to storing up on essentials like groceries.
Canada set a new record for coronavirus infections on Thursday, April 15, as the number of daily cases crossed 9,500 for the first time since the pandemic started last year. The latest surge brought the total number of coronavirus cases to 1,096,716, according to the data on worldometer.
The national death toll climbed to 23,500 after 55 new deaths were reported on Wednesday.
Apart from the physical distancing measures and ban on public gatherings, Canadian provinces are likely to announce a stricter lockdown to curb the spread of the virus. In the anticipation of such an event, Canadians may soon resort to storing up on essentials like groceries.
On that note, let’s explore two trending consumer stocks on the TSX – Dollarama Inc (TSX:DOL) and Premium Brands Holdings Corporation (TSX:PBH).
Dollarama Inc (TSX:DOL)
Dollarama Inc, which operate a chain of discount retail stores, currently holds a market cap of C$ 17.8 billion. Currently outperforming its peers on the TSX, the consumer stock has a 459.04 per cent return on equity (ROE) and 14.45 per cent return on assets (ROA), as per TMX.
Dollarama pays a quarterly dividend of C$ 0.05, which witnessed a growth rate of 7.18 per cent in the last three years and that of 8.7 per cent in five years. According to TMX, it currently registers a dividend yield of 0.352 per cent.
One-year performance of Dollarama stock (Source: Refinitiv/TR)
In the last one year, Dollarama stock ballooned by 33.6 per cent. This year, it has grown by 11.1 per cent to date.
Dollarama posted a gross profit of C$ 502.4 million in Q4 2021, up by 5.5 per cent year-over-year (YoY). In 2020, its annual EBITDA increased by 1.8 per cent YoY to C$ 1.1 billion.
Premium Brands Holdings Corporation (TSX:PBH)
Premium Brands Holdings, a specialty foods and premium distribution company, records a market cap of C$ 5.2 billion. Its price-to-book (P/B) ratio stands at 3.279, while its return on equity (ROE) is 6.27 per cent and its return on assets (ROA) is 2.58 per cent, as per TMX data.
The Richmond-based company’s quarterly dividend stands at C$ 0.578, which grew at the rate of 11.13 per cent in the past three years. The dividend yield currently stands at 1.925 per cent.
One-year performance of Premium Brands stock (Source: Refinitiv/TR)
Premium Brands stock surged by over 43 per cent in the past year and by over 19 per cent year-to-date (YTD).
The company, in its fourth quarter ending 26 December 2020, posted an increase of 10.1 per cent YoY in its record revenue of C$ 1.1 billion. For the same period, its adjusted EBITDA was up by 16.8 per cent YoY to C$ 87.7 million.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
