CAE Inc (nyse:CAE) - aviation stocks, aviation training services, aerospace industry, healthcare sector
This year CAE Inc of Montreal became one of the world's largest simulation technology companies. Its business is arguably the most diversified in the training services sector - at just under 200 locations in over 30 countries the company offers training services for pilots (civil aviation, defence), and manufactures key simulation technology for healthcare and security agencies. 50% of revenue comes from the sale of products (simulators and related technology) with the rest coming from services (aircraft operations training - over 100,000 civil and military personnel).
Among industry observers CAE enjoys a rock solid reputation. It's extremely diversified (does not rely on a single market sector or customer), owns unique technology that has quickly become a mainstay in global aerospace training. Business from healthcare is strong (hospitals and universities).
- a global leader
- the leading provider of commercial and helicopter aviation training services worldwide - second leading provider of business aviation services - market leader in key regions of China, India, South America
- highly exposed to the growing defence and security sector (6% increase in revenue quarter ended September 30, 2014 - thanks to more activity in north amerca, europe and asia).
- secured new contract to train the US Air Force
- four consecutive years of revenue growth (2,114.90 2,035.20 1,821.20 1,630.80)
- four consecutive years of dividend growth (0.22 0.19 0.16 0.15)
- earnings up 38% last fiscal year (March to March) to $190 million.
1-year 6-months 3-months 1-month
1.2% (1.4)% 6.8% (1.2)%
Constellation Software Inc
2014 was a great year for Constellation Software Inc of Toronto (tsx:CSU). The stock is up 60% for the year, bringing the market capitalization of the company to just under $8 billion and for good reason - in the latest quarter
- revenue is up a hefty 33% to $419 million (acquisitions accounted for all but 4%).
- earnings up 44% to $32 million vs $22m (per share $1.51 vs $1.05).
- adjusted ebitda up 73% to $100 million.
it's not just that last quarter either that has investors gleaming - over the last nine months adjusted ebitda is up 55% to $244 million. net income up 26% -> $64 million.what I like about the company
it manufactures market leading software and has exposure to a number of industries (public and private). the software it provides is critical making its products invaluable (meaning there are few if any alternatives - makes for more reliable customers). Annual revenue recently surpassed $1 billion ! and quarterly growth is light years ahead of the competition (over 50%). For a company with a market value over $7.3 billion it's an amazing feat to record 60% growth in stock price in just one year.tsx:CSU stock price change
1-year 6-months 3-months 1-month
59.48% 27.02% 21.35% 4.19%
Open Text Corporation of Waterloo, Ontario (b2b services, yahoo) - nasdaq:OTEX
2014 was a wonderful year for Open Text Corporation - It's New Year's Eve and year-to-date the stock up 28% to $58.26 (market cap at $7.2 billion on the nasdaq). Like other Canadian success stories (Valeant, Constellation) company growth hinges on acquisitions (which it has done without overleveraging). Last year Open Text made the biggest deal in its 24-year history - $1.17 billion foreign acquisition of GXS, a market leader in B2B integration services (assists in managing transactions with trading partners). Has an interesting history too - its first indexing system eventually became Yahoo's first search engine.Annual revenue growth is solid (fiscal year ends in June) But what stands out the most are the dividends - up 313% in the latest fiscal year !! $0.15 -> $0.62
Its customers range from small independent businesses to large enterprises. Even though it has some big competitors (IBM) Open Text continues to thrive in the current market.nasdaq:OTEX
1-year 6-months 3-months 1-month
27.8% 18.9% 6.0% (1.4)%
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