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Highlights
- George Weston’s revenue in Q3 2022 was C$ 17.52 billion.
- In Q3 2022, Boyd Group’s total sales were noted at US$ 625.66 million.
- Linamar’s sales net earnings in Q3 2022 were noted at C$ 133.2 million.
With Christmas around the corner, most Canadians are working on their shopping lists. Along with being a smart shopper, be a smart investor and gift yourself with stocks to increase your wealth in the long run.
During the holiday season, there are several opportunities in the stock market. Investors, usually prefer consumer stocks due to an increase in consumer demand. The consumer industry is an essential contributor to the Canadian economy.
Despite the pandemic, the sector was catering to consumer demands. The sector may keep on fluctuating depending upon external factors. Gradually, retailers are adapting to the changing trends and forming innovative strategies.
As an investor, focus on the existing opportunities in the market. Your every step must be research-based and backed up by substantial analysis. In addition to this, look for the changing market trends along with the ongoing consumer behavior. Based on these cumulative factors, you may devise your investment strategy.
Now, let us look at the five consumer stocks and assess their latest financials:
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Boyd Group Services Inc. (TSX:BYD)
Boyd Group Services Inc. operates as a personal services company and provides auto body and auto glass repair services. With a total market capitalization of US$ 4553.17 million, the company operates in two locations-Canada and the US. In Canada, it operates under Boyd Autobody and Glass brand, and in the US, it operates by the name Gerber Collision and Glass.
In Q3 2022, Boyd Group’s total sales were noted at US$ 625.66 million compared to US$ 490.17 million in Q3 2021. The company’s gross margin saw an increase and was reported at 45.1 per cent versus 44 per cent.
The adjusted EBITDA rose to US$ 73.04 million from US$ 51.5 million. The net earnings grew to US$ 11.87 million from 0.43 million for the reported quarter. Boyd Group’s basic EPS grew to US$ 0.55 from US$ 0.02. The company authorized a quarterly dividend of C$ 0.144 and posted a dividend yield of 0.264 per cent.
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George Weston Limited (TSX:WN)
George Weston Limited is into real estate and retail operating through its two subsidiaries-Loblaw (53 per cent controlling stake) and Choice Properties (62 per cent controlling stake). Loblaw is a Canada-based grocer and Choice Properties is a real estate investment trust. Presently, the company’s total market capitalization is C$ 24096.11 million.
In Q3 2022, George Weston’s adjusted EBITDA was noted at C$ 1.95 billion compared to C$ 1.78 billion in Q3 2021. The operating income jumped to C$ 1.47 billion from C$ 1.12 billion for the same comparable period. The revenue grew to C$ 17.52 billion from C$ 16.19 billion.
Meanwhile, the free cash flow from continuing operations was noted at C$ 565 million from C$ 478 million for the reported quarter. The company’s funds from operations remained unchanged at C$ 173 million compared to the year-ago quarter.
Geroge Weston distributed a quarterly dividend of C$ 0.66 and posted a dividend yield of 1.567 per cent. The company’s EPS is C$ 14.48.
Market Capitalization of BYD, WN, LNR, UNS and PBH:
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Linamar Corporation (TSX:LNR)
Linamar Corporation is engaged in manufacturing engineering products. With the total market capitalization of C$ 4101.13 million. The company operates the MacDon and Skyjack brands that manufacture products for the Agricultural industries and Aerial Work Platform, respectively.
Linamar’s sales in Q3 2022 were reported at C$ 2,098.1 million compared to C$ 1,645 million in Q3 2021. The net earnings rose to C$ 133.2 million from C$ 108.8 million for the same comparative period. The company’s EBITDA grew to C$ 282.5 million from C$ 255.2 million. Meanwhile, its operating earnings soared to C$ 168.4 million from C$ 150.7 million for the reported quarter. The company’s EPS is C$ 5.95 and it paid a quarterly dividend per share of C$ 0.20. Linamar’s three-year dividend growth was noted at 13.03 per cent.
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Uni-Select Inc. (TSX:UNS)
Uni-Select Inc. deals in products for motor vehicles such as paint and related automotive. With a total market capitalization of US$ 1955.57 million, the company operates in The Parts Alliance UK segments, Canadian Automotive Group, FinishMaster US.
In Q3 2022, Uni-Select’s sales were noted at US$ 452.68 million versus US$ 426.09 million in Q3 2021. For the same period, the EBITDA rose to US$ 47.61 million from US$ 35.32 million.
The company’s net earnings increased to US$ 22.41 million from US$ 11.92 million. Meanwhile, the free cash flow soared to US$ 67.15 million from US$ 36.95 million for the reported quarter. Uni-Select’s cash flow from operating activities increased to US$ 74.62 million from US$ 42.86 million.
As on September 30, 2022, the company’s total net debt decreased to US$ 264.44 million from US$ 309.23 million on December 31, 2021.
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Premium Brands Holdings Corporation (TSX:PBH)
Premium Brands Holdings Corporation manufactures specialty food, distributes premium food. The company is engaged in wholesale businesses with a presence in Washington, Quebec, Ontario, Nevada, Alberta and British Columbia with a total market capitalization of C$ 3728.07 million.
In Q3 2022, Premium Brands Holdings’ revenue rose to C$ 1,623.9 million from C$ 1,341.8 million. The adjusted earnings grew to C$ 61.3 million from C$ 57.8 million for the same comparative period. The company’s adjusted EPS was noted at C$ 1.37 versus C$ 1.33.
Meanwhile, the adjusted EBITDA increased to C$ 141.2 million from C$ 122.6 million for the reported quarter. Premium Brands Holdings’ total assets soared to C$ 5,053.7 million from C$ 4,021.8 million. Meanwhile, the liabilities increased to C$ 2,753 million from C$ 1,961.6 million. The company reported a dividend yield of 3.366 per cent and distributed a quarterly dividend of C$ 0.70 per share.
Bottom Line
Post-pandemic, every retailer is working on increasing their sales and attracting more customers. With the onset of the festive season, consumers are also geared up for their shopping.
Amid this, every investor may try to gain stability and tap on opportunities. For your portfolio, make sure to maintain a low-risk strategy. Diversification is an effective way to implement the low risk factor in your investment strategy.
Moreover, repositioning of portfolio is a crucial step to align your stocks selection with your long-term investment goals. This may bring stability and will give insights to plan your portfolio accordingly.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
