TIH, FAR: 2 stocks to look at during this earnings season - Kalkine Media

July 31, 2023 08:32 AM EDT | By Akanksha Vashisht
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Summary

  • The S&P/TSX Composite Index rose 0.66% on July 28, 2023.
  • Toromont Industries Ltd., a distribution services company, has a P/E ratio of 17.34x based on its closing price of US$112.25 on July 28, 2023.
  • Foraco International SA, a mineral and water drilling services provider, has a P/E ratio of 5x based on Friday’s closing price of US$1.81.

The S&P/TSX Composite Index rose 0.66% on July 28, 2023. With the markets witnessing an interesting earnings season, investors are on the lookout for stocks that have reported an increase in earnings.

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Here are two stocks that have reported an increase in financial results and overall gains in their stock market performance on a YTD basis: Toromont Industries Ltd. and Foraco International SA.

Toromont Industries Ltd. (TSX: TIH)

Toromont is a distribution services company with two major segments: Equipment Group and CIMCO. The former includes a Caterpillar dealership and renting construction equipment, the former is a design and engineering solutions provider. TIH has a market cap of US$9.2 billion.

Toromont reported a 12% y-o-y increase in revenue to US$1.175 billion in the second quarter of 2023. The company’s operating income increased 15% to US$178.77 million during Q2 2023, as compared to Q2 2022.

Image source: ©2023 Kalkine®; Data source: Company Reports

TIH has a P/E ratio of 17.34x based on its closing price of US$112.25 on July 28, 2023. The stock’s YTD gains as on Friday, July 28, 2023, stand at 14.13%, while its monthly gains stand at 5.62%.

TIH also stated that its net debt to total capitalization ratio was -4% and the return on equity was 24.6% at the end of June 2023.

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Foraco International SA (TSX: FAR)

The company provides mineral and water drilling services alongside hydraulic drilling. The company provides its drilling services especially in harsh environments and isolated locations. FAR has a market cap of US$179.64 million.

Foraco reported revenue of US$100.06 million for the June 2023 quarter, as against US$86.49 million in the June 2022 quarter. Meanwhile, its gross profit was US$25.96 million in Q2 2023, compared to US$18.78 million in Q2 2022. 

Image source: ©2023 Kalkine®; Data source: Company Reports

Foraco’s EBITDA margin stood at US$23.8 million, which made up for 24% of revenue, a year-on-year increase of 33%.

Based on FAR’s closing price of US$1.81 on Friday, July 28, 2023, the stock has a P/E ratio of 5x. The stock rose by 24.83% on a YTD basis and 7.10% monthly as on July 28, 2023.

 

 

 


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