Top 5 Canadian smallcap stocks of 2021

Highlights

  • Smallcap companies hold a market capitalization between C$ 300 million to C$ 2 billion.
  • A smallcap stock mentioned here surged by over 163 per cent on a year-to-date (YTD) basis.
  • A Winnipeg, Manitoba-based retailer is expected to dole out a quarterly dividend of C$ 0.37 apiece on January 14, 2022.

Smallcap companies hold a market capitalization between C$ 300 million to C$ 2 billion. Investors aiming for quality returns with limited investments generally prefer smallcap stocks as they are comparatively cheaper than bluechip and midcap stocks. 

So, let us explore top five TSX-listed smallcap stocks.

Canadian smallcap stocks

 Image source: © 2021 Kalkine Media

1.    IBI Group Inc (TSX:IBG)

IBI Group Inc, aka IBI, provides technology-driven engineering solutions and services to clients across the United States, Canada and the United Kingdom.

The Toronto-based firm recorded a revenue of C$ 109.6 million in Q3 FY2021, noting a year-over-year (YoY) rise of 12 per cent. It included organic growth of C$ 6.4 million, a YoY rise of 6.5 per cent. 

Its net income was C$ 8.2 million in Q3 FY2021, a YoY surge of 30 per cent.

IBI’s stock swelled by roughly six per cent in the past one month. The industrial stock increased by almost 73 per cent in the last 12 months.

Its stock closed at C$ 13.88 apiece on Wednesday, December 8, up by nearly two per cent.

Also read: Which Canadian bank stocks to buy as dividends go up?

2.    Sleep Country Canada Holdings Inc (TSX:ZZZ)

Sleep Country Canada Holdings Inc is a retailer that markets mattress and bedding products in Canada.

The mattress company saw a revenue surge of 13 per cent YoY to C$ 242.2 million in Q3 FY2021. Its adjusted net income jumped by 19.5 per cent YoY to C$ 39.7 million in the latest quarter.

The company also planned to expand its partnership with Walmart Canada by opening ten new stores in Walmart Supercentres in the fourth quarter of FY2021.

In the past six months, the retail stock expanded by over 29 per cent. It also climbed almost 51 per cent in the last year.

ZZZ stock closed at C$ 37.94 apiece on December 8, down by nearly one per cent.

3.    Celestica Inc (TSX:CLS)

On November 1, Celestica Inc strategically acquired PCI Private Limited, a Singapore-headquartered electronic manufacturing service company, to expand and diversify its market operations and product portfolio.

The hardware technology provider posted a revenue of US$ 1.47 billion in the third quarter of fiscal 2021, a YoY decline of five per cent. 

On the other hand, its non-International Financial Reporting Standards free cash flow was US$ 27.1 million, up from US$ 15.8 million in the same quarter a year ago.

CLS stock spiked by nearly nine per cent in the past one week. It returned roughly 31 per cent in the last year.

The technology stock closed at C$ 13.75 apiece on December 8, down by less than one per cent.

4.    North West Company Inc (TSX:NWC)

North West Company saw its earnings from operation grow by 5.9 per cent YoY to C$ 56.1 million in the third quarter of fiscal 2021. Its net income amounted to C$ 39.2 million in the latest quarter.

The Winnipeg, Manitoba-based retailer is expected to dole out a quarterly dividend of C$ 0.37 apiece on January 14, 2022.

The retail stock soared by over 10 per cent so far this year. It closed at C$ 35.81 on December 8, up by roughly two per cent.

5.    AirBoss of America Corp (TSX:BOS)

AirBoss of America Corp reported net sales of US$ 112.02 million in the third quarter of fiscal 2021, down from US$ 162.74 million recorded a year ago. Its profit was US$ 6.90 million in Q3 FY2021.

The manufacturer of rubber-based products is scheduled for a quarterly dividend payment of C$ 0.10 apiece on January 17, 2022.

AirBoss saw its stock close at C$ 41.48 apiece on December 8, up by less than a per cent. Its stock surged by over 163 per cent on a year-to-date (YTD) basis.

Also read: Which Canadian penny stocks would be a smart buy?

Bottom line

Smallcap stocks can help investors fetch significant returns in the future, considering right investment strategies are implemented. Investors should always prefer to invest in quality stocks as they are more likely to withstand market hiccups.

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