Kalkine Media explores 5 TSX small-cap stocks to watch in November

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 Kalkine Media explores 5 TSX small-cap stocks to watch in November
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Highlights

  • In Q2 2022, goeasy’s operating income was C$ 85.18 million.
  • Dye & Durham’s revenue in Q4 2022 was at C$ 45.3 million.
  • On October 11, 2022, WELL health declared its acquisition agreement for Cloud Practice Inc.

Small-cap stocks form a part of a diversified investment strategy. Sometimes, they outperform large-cap stocks and offer stable returns to investors. With such stocks, liquidity plays a vital role, and investors must watch before selecting them.

Do your research and analyze every factor and trend operating in the market. Picking up the right small-cap stocks may be rewarding as they may grow faster than their bigger peers. Understand that risk is an indispensable part of an investor’s journey, and it must be taken in the same spirit.

The economic expansion in the right direction and an upward trend in demand may prove to be the growth factor for small-cap stocks. In addition to this, market share growth is another factor that may facilitate these stocks to offer stable returns to their investors. Be cautious and analytical while structuring your portfolio.

Here are five small-cap stocks to analyze along with their recent financial performance:

  1. goeasy Ltd. (TSX: GSY)

goeasy Ltd. is engaged in providing financial services along with unsecured installment loans. The company offers financial services to own appliances, computers, and furniture. Further, it offers merchandise under weekly or monthly leasing agreements in the segment of home electronic products, appliances, and household furnishings.

In Q2 2022, goeasy’s operating income rose to C$ 85.18 million from C$ 56.09 million in Q2 2021. The revenue also increased to C$251.65 million from C$ 202.35 million for the same period.

goeasy’s net income soared to C$ 38.3 million from C$ 19.46 million. The EBITDA increased to C$ 90.47 million from C$ 62.49 million. The price-to-earnings (P/E) ratio of the company was noted at 10.8 with a quarterly dividend of C$ 0.91 per share. The growth in the dividend for the past five years was reported at 35.83 per cent.

The basic EPS of goeasy Ltd. in two different quarters:

  1. Dye & Durham Limited (TSX: DND)

Dye & Durham Limited is a tech company with a total market capitalization of C$ 868.52 million. It offers cloud-based software and solutions for increasing productivity and efficiency for business and legal professionals.

The company operates in the UK and Canada. The clientele of the company includes government organizations, law, and financial service institutions.

In Q4 2022, Dye & Durham’s revenue increased by C$ 45.3 million to C$ 129.7 million from Q4 2021. The adjusted EBITDA also rose by C$ 26 million to C$ 75.2 million (up by 53 per cent). The net loss for the same period declined by C$ 9.6 million and was noted at C$ 3.3 million. With earnings per share of C4 0.11, the company distributes a quarterly dividend of C$ 0.019 per share.

  1. WELL Health Technologies Corp. (TSX: WELL)

WELL Health Technologies Corp. operates through a portfolio of Primary Hclinics. The company is engaged in delivering healthcare-related services through its portfolio. There are several segments under the company that includes- EMR (electronic medical record), digital apps, billing solutions, revenue cycle management solutions, clinical operations, and allied health.

In Q2 2022, the revenue of the company rose to C$ 140.32 million from C$ 61.79 million in Q2 2021. The total comprehensive income also increased to C$ 14.06 million from a loss of C$ 11.85 million. The assets grew to C$ 1,298.08 million from C$ 1,276.52 million for the same comparative period. On the other hand, the liabilities reduced to C$ 536.8 million from C$ 568.51 million.

On October 11, 2022, WELL health declared its acquisition agreement for Cloud Practice Inc.

  1. SunOpta Inc. (TSX: SOY)

SunOpta Inc. deals in healthy products and is based in Canada. Plant-Based Foods and Beverages and Fruit-Based Foods and Beverages are the two segments operated by the company, the former being the contributor for maximum revenue generation.  

In Q2 2022, SunOpta’s revenue soared to US$ 243.53 million, which was an increase of 20.4 per cent from US$ 202.27 million in Q2 2021. The gross profit also rose to US$ 34.89 million from US$ 26.33 million. The net earnings grew to US$ 1.68 million from a loss of US$ 918 thousand.

The cash and cash equivalents of SunOpta witnessed an increase and was noted at US$ 553 thousand from US$ 227 thousand. The adjusted EBITDA rose to US$ 22.34 million from US$ 16.14 million.

  1. Athabasca Oil Corporation (TSX: ATH)

Athabasca Oil Corporation’s core products include liquids-rich natural gas and light oil. There are two business segments operated by Athabasca - Thermal Oil and Light Oil, the former being the maximum revenue generator for the company.

In Q3 2022, Athabasca’s operating income witnessed an increase and was reported at C$ 140.08 million from C$ 120.58 million in Q3 2021. The FCF (free cash flow) decreased to C$ 50.07 million from C$ 56.62 million.

Athabasca cash flow from operating activities rose to C$ 117.85 million from C$ 75.74 million. The net income also soared to C$ 155.09 million from C$ 104.95 million. The P/E ratio of Athabasca Oil is 3.50 with earnings per share of C$ 0.84.

Athabasca stock witnessed a YTD (year-to-date) increase of 140.33 per cent.

Bottom Line

While investing in small-cap stocks, keep your investment goals in mind. Look for the stocks that fit in to your portfolio and align with your strategies. As an investor, patience is the key trait required to deal in a volatile market.

With low risk tolerance, it may be difficult to survive the fluctuations. Hence, plan your portfolio and strategy both and align them in one direction for a stable future.

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.

 

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