2021-06-10 07:32 ET - In the News

See In the News (C-LNF) Leon's Furniture Ltd

The Globe and Mail employs a value and income strategy to find promising stocks in its Thursday edition. The Globe's guest columnist Sean Pugliese writes that he, together with colleague Allan Meyer, highlight one of their favourite valuation metrics, free cash flow to enterprise value, by analyzing Canadian dividend payers using their investment philosophy focused on safety and value. Their picks had to have a market capitalization greater than $1-billion. Market cap is a safety factor -- generally larger companies offer more stability and trading liquidity. Securities needed to have a yield more than 2 per cent. Debt to equity was their final safety measure. It is the debt outstanding divided by shareholders' equity. A smaller ratio is preferred. They also used free cash flow to enterprise value as a valuation metric. FCF is the cash left over for investors after all expenses, while EV is a measure of the company's value excluding its cash, higher figures preferred. They also looked for positive earnings momentum change in annual earnings over the past quarter. Their recommended picks are Leon's Furniture, Finning International, Transcontinental, Evertz Technologies, Westshore Terminals Investment and B2Gold.

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