Are you an investor looking for high-growth, steady income, or both? What makes a suitable investment stock for your personal needs? Given that there are many factors to consider, I’ve filtered down to five key characteristics most investors look for. I’ve composed a list of companies that delivered strong outcome for two or more fundamental aspects, making them sought-after investments .
Cipher Pharmaceuticals Inc. (TSX:CPH)
Cipher Pharmaceuticals Inc., together with its subsidiaries, operates as a specialty pharmaceutical company in Canada. Formed in 2004, and currently headed by CEO Robert Tessarolo, the company currently employs 26 people and with the market cap of CAD CA$91.39M, it falls under the small-cap category.
CPH’s earnings growth in the past year reaching triple-digits, leading to an equally impressive triple-digit return on equity, is an impressive feat for the company. CPH has ample cash coverage over its short term liabilities, and its debt is adequately covered by its operating cash, which indicates its strong financial position. Likewise, CPH’s share price is below its intrinsic value based on its discounted cash flows, and its relative PE ratio compared to its industry, meaning those that are interested in the stock can buy it for cheap. Continue research on Cipher Pharmaceuticals here.
ZCL Composites Inc. (TSX:ZCL)
ZCL Composites Inc. designs, manufactures, and supplies fiberglass reinforced plastic (FRP) underground storage tanks in Canada, the United States, and internationally. Founded in 1987, and run by CEO Ronald Bachmeier, the company now has 658 employees and has a market cap of CAD CA$305.34M, putting it in the small-cap group.
ZCL has ample cash coverage over its short term liabilities, and the business has no debt on its books, portraying its strong financial capacity. Additionally, ZCL’s consistent dividend payout, which has grown over a long period of time, makes it one of the highest dividend payers in the market. More on ZCL Composites here.
George Weston Limited (TSX:WN)
George Weston Limited engages in the food processing and distribution business in Canada and internationally. Started in 1882, and currently headed by CEO Galen Weston, the company provides employment to 198,000 people and with the stock’s market cap sitting at CAD CA$13.29B, it comes under the large-cap stocks category.
WN’s earnings growth in the past year of 36.60%, beating the consumer retailing industry’s growth of 35.21%, is what investors like to see. WN’s shares are now trading at a price below its true value based on its discounted cash flows, and its relative PE ratio compared to its industry, which gives investors an opportunity to accumulate the stock at a low price. In addition to this, WN’s ample net income is able to cover all of its dividend payments, which has also been steadily increasing over time. More detail on George Weston here.
For more fundamentally-robust companies with industry-beating characteristics to enhance your portfolio, explore this interactive list of big green snowflake stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.