Analysts are bullish on these following companies: Cathedral Energy Services, Freehold Royalties, SEMAFO. These companies are relatively strong financially, and have a great outlook in terms of profits and cash flow. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Cathedral Energy Services Ltd. (TSX:CET)
Cathedral Energy Services Ltd., together with its subsidiary, Cathedral Energy Services Inc., provides directional drilling services to oil and natural gas companies in western Canada and the United States. The company now has 356 employees and with the company’s market cap sitting at CAD CA$72.13M, it falls under the small-cap category.
CET’s forecasted bottom line growth is an exceptional 68.47%, driven by the underlying double-digit sales growth of 27.81% over the next few years. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 9.00%. CET’s bullish prospects on both the top and bottom lines make it an interesting stock to invest more time to understand how it can add value to your portfolio. Considering CET as a potential investment? Check out its fundamental factors here.
Freehold Royalties Ltd. (TSX:FRU)
Freehold Royalties Ltd., an oil and gas royalty company, owns working interests in oil, natural gas, and potash properties in Western Canada. Freehold Royalties was founded in 1996 and with the company’s market capitalisation at CAD CA$1.47B, we can put it in the small-cap group.
FRU’s projected future profit growth is a robust 28.82%, with an underlying 7.69% growth from its revenues expected over the upcoming years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of FRU, it does not appear too severe. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 5.16%. FRU’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about FRU? Have a browse through its key fundamentals here.
SEMAFO Inc. (TSX:SMF)
SEMAFO Inc., a mining company, engages in the exploration, development, and operation of gold properties in West Africa. Started in 1994, and now led by CEO Benoit Desormeaux, the company now has 1,034 employees and has a market cap of CAD CA$1.21B, putting it in the small-cap group.
SMF’s forecasted bottom line growth is an exceptional 51.99%, driven by underlying sales, which is expected to more than double, over the next few years. Profit growth, coupled with top-line expansion, is a positive indication. This is because net income isn’t artificially inflated by unsustainable activities such as one-off cost-reductions expected in the future. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 12.10%. SMF’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add SMF to your portfolio? Take a look at its other fundamentals here.
For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.