Should you watch these industrial sector stocks in September? - Kalkine Media

September 05, 2023 03:14 AM EDT | By Akanksha Vashisht
Follow us on Google News:

Summary

  • Finning International Inc., a seller and renter of Caterpillar brand machinery, has a P/E ratio of 11.35x based on Friday’s closing price.
  • Wajax Corporation, a mining and construction goods and services provider, reported Q2 2023 revenue of CA$586.2 million.
  • Buhler Industries Inc., a manufacturing player for the agricultural industry, has a P/E ratio of 3.56x based on Friday’s closing price.

The industrial sector is a critical cog in the wheel for many other segments of the economy such as manufacturing, retail, electronic technology and communications to name a few.

The industrial sector generally performs well as the market moves higher. A booming industrial sector is an indication of economic growth and advancement for a nation.

The S&P/TSX industrials index saw an intraday increase of 5.44 basis points on September 1, 2023. The index has been moving higher over the past year, with a YTD rise of 8.08%.

Image Source: Pexels ; ©2023 Krish Capital Pty Ltd.

Meanwhile, the broader S&P/TSX Composite index was also higher on Friday, September 1, 2023, by over 250 basis points intraday.

ALSO READ: Are these energy sector stocks undervalued?

With that, let us examine three TSX-listed industrial stocks that can be interesting to watch in September 2023:

Finning International Inc. (TSX: FTT)

Finning International sells and rents Caterpillar brand machinery to businesses engaged in various industries. FTT has a market cap of over CA$6 billion.

Finning International reported an EPS of CA$1 in Q2 2023, which was 24% higher than previous corresponding period (Q2 2022). The company’s revenue in the 2023 quarter was CA$2.8 billion and net revenue was CA$2.6 billion, which were 21% and 28% higher, respectively.

The company reported a free cash flow of CA$31 million in Q2 2023, as against a use of cash of CA$142 million in Q2 2022.

Powered By: TardingView

Based on Friday’s closing price of CA$43.49, FTT has a P/E ratio of 11.35x and a dividend yield of 2.30%. The stock hit its 52-week high of CA$46.3 last month on August 2, 2023.

ALSO READ: Watch these TSX-listed stocks as inflation climbs 3.3%

Wajax Corporation (TSX: WJX)

Wajax offers a range of products and services to consumers belonging to mining, construction, transportation and other such industries. WJX has a market cap of over CA$600 million.

The company reported Q2 2023 revenue of CA$586.2 million, an increase of over 14% over 2022. Wajax’s adjusted EBITDA for Q2 2023 was CA$57.2 million, a jump of 26.6% over the same quarter of the previous year.

Wajax’s announced dividend of CA$0.33 per share is payable on October 3, 2023, for which the ex-dividend date is September 15, 2023.

Powered By: TradingView

Based on Friday’s closing price of CA$29.19, WJX has a P/E ratio of 7.69x and a dividend yield of 4.52%. The stock price has grown consistently over the past year, with YTD gains of 49.39% and intraday gains of 3.81%.

Buhler Industries Inc. (TSX: BUI)

Buhler Industries is a manufacturing company for agricultural equipment such as tractors, mowers and fertilizers. BUI has a market cap of over CA$65 million.

Buhler’s net income in Q2 2023 was CA$16.1 million, as compared to CA$ 1.1 million in Q2 2022. Meanwhile, its revenue came in at CA$67.6 million in the June 2023 quarter, as compared to CA$57.8 million in the June 2022 quarter. 

Powered By: TradingView

Based on Friday’s closing price of CA$2.62, BUI has a P/E ratio of 3.56x. The stock has grown by 39.36% on a YTD basis and by 3.97% intraday.

 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.



Top TSX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK