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Highlights
- In Q3 2022, Toromont Industries Ltd.’s revenue was C$ 1,139.6 million.
- Algonquin Power’s adjusted EBITDA in Q2 2022, was US$ 289.3 million.
- In Q2 2022, Crescent Point's cash flow from operating activities was C$ 647 million.
Despite the challenges due to the pandemic, many companies are now returning to their old profitable ways. Most investors look for stocks that capitalize on the opportunity and in return deliver a substantial return.
Following a growth strategy, investors look for mid-cap stocks that may offer growth potential to their portfolios. As compared to the other stocks, these stocks are less prone to volatility and risks in the market.
Generally, investors work with the aim of minimizing their risk and maximize their output. For this, ensure to scrutinize every stock in detail along with the past performances as well.
Once you understand and assess the stock in detail, it will help you to unlock the gains from that stock. Also, it will lead to substantial gains in the future.
Mid-cap stocks are an entirely different category from the small-cap and the large-cap. They also differ in terms of their exposure to volatility.
Follow a balanced approach that will reposition your portfolio in the right direction.
Let us explore five mid-cap stocks along with their recent financial performances:
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Toromont Industries Ltd. (TSX:TIH)
Toromont Industries Ltd. is based in Canada and operates with two business segments- CIMCO and Equipment Group. The latter contributes a larger share of the company’s revenue and is engaged in dealership and rental operation of construction equipment. On the other hand, CIMCO deals in recreational and industrial refrigeration and caters to their designing, fabrication, and engineering.
In Q3 2022, Toromont’s revenue witnessed an increase and was reported at C$ 1,139.6 million from C$ 997.2 million in Q3 2021. The operating income rose to C$ 169.1 million from C$ 134.4 million for the same period.
Toromont’s net earnings in the reported quarter soared to C$ 123.1 (increase of 31 per cent) million from C$ 93.8 million. The basic EPS (earnings per share) also rose to C$ 1.5 from C$ 1.13.
As of September 30, 2022, the company witnessed a reduction in the net debt and was reported at C$ 124.06 million versus C$ 270.49 million on December 31, 2021. Toromont paid a quarterly dividend of C$ 0.39 apiece to shareholders and its dividend yield was 1.49 per cent at the time of writing.
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Algonquin Power & Utilities Corp. (TSX:AQN)
Algonquin operates with its subsidiary company Liberty. The company is engaged in distribution, generation, and transmission of utility assets. Further, it has two businesses under it-Renewable Energy and Regulated Services.
In Q2 2022, Algonquin Power’s revenue rose to US$ 624.3 million from US$ 527.5 million in Q2 2021. The adjusted EBITDA also soared to US$ 289.3 million from US$ 244.9 million. The adjusted net earnings were reported at US$ 109.7 million from US$ 91.7 million. The adjusted FFO (funds from operations) was noted at US$ 180.3 versus US$ 161.3 million.
Algonquin distributes a quarterly dividend of US$ 0.181 per share. It has a dividend yield of 6.318 per cent.
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Canadian Tire Corporation Limited (TSX: CTC.A)
Canadian Tire sells a variety of products, including vehicle fuel and sports equipment. The company has a network of 1,710 stores including dealerships, franchises and company operated.
In Q2 2022, Canadian Tire’s revenue grew by C$ 485.5 million to C$ 4,404 million. The company’s net income decreased to C$ 177.6 million from C$ 259.1 million in Q2 2021. Canadian Tire pays a quarterly dividend of C$ 1.625 and has an EPS of C$ 17.89. The P/E (price-to-earnings) ratio is at 8.5.
The five-year dividend growth of TIH, AQN, CTC.A, CPG, TCN:
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Crescent Point Energy Corp. (TSX:CPG)
Crescent Point works on developing, holding interests, and acquiring petroleum and natural gas assets along with its wholly owned subsidiaries.
In Q2 2022, the cash flow from operating activities of Crescent Point grew to C$ 647 million from C$ 414.2 million in Q2 2021. Its adjusted funds flow from operations also rose to C$ 576.5 million from C$ 393.9 million. Moreover, the net income in the reported quarter also soared to C$ 466.4 million from C$ 77.5 million.
The EPS of the company is C$ 3.64 and the quarterly dividend is C$ 0.08 per share. Crescent Point reported a dividend yield of 2.844 per cent.
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Tricon Residential Inc. (TSX:TCN)
Tricon Residential Inc. deals in rental housing and caters to the middle-market section. The company operates in the US and Canada. With a technology operated platform, Tricon Residential manages and owns roughly 29000 single-family rental homes and multi-family rental units.
In Q2 2022, the net income of Tricon Residential was reported at US$ 416.86 million versus US$ 146.32 million in the same quarter of the last year. The adjusted FFO rose to US$ 40.73 million from US$ 28.22 million. The company distributes US$ 0.058 per share as dividend on a quarterly basis. EPS is US$ 4.44 with a P/E ratio of 2.5.
Bottom Line
Before selecting your mid-cap stocks, list down the factors that may directly or indirectly affect the market and your portfolio. Operate in the market with a long-term approach as the stocks may rally one day and may sink the next. Hence, having a short-term approach may not be effective and with a propensity to incur losses.
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.
