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

September 05, 2023 03:14 AM EDT | By Akanksha Vashisht
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  • 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%.

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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.

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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.

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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. 

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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.



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