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The Top Growth Canadian Stocks from the Buffett-Munger Screener

January 17, 2013 | About:
It’s exciting to finally delve into our newly introduced coverage of Canada-traded stocks using GuruFocus’ many useful screeners.

One member favorite, of course, is the Buffett Munger Screener, using four of Warren Buffett’s premier criteria for finding companies at undervalued or fair-valued prices.

With more options to further categorize the stocks upon using the screener, results showed that the following companies exhibited the highest 10-year EBITDA growth percentages, while maintaining a four-star or higher business predictability rank on GuruFocus.



Potash Corp. (POT)


Saskatchewan-based fertilizer company Potash Corp. has a 10-year EBITDA growth rate of 32.9 percent and a business predictability rank of 4.5 stars.

It currently trades at $41.21. Its market value has gained 4.78 percent in three years.

1358444689173.pngTSX:POT data by GuruFocus.com

Named after the potassium-based product mainly used as an agricultural fertilizer, Potash Corp. fittingly focuses on just that – potash resources, along with high-quality phosphate and nitrogen assets. It operates five mines in Saskatchewan and one in New Brunswick, and maintains interests in offshore potash-related businesses in Jordan, Israel, Chile and China, strengthening its global position.

Besides a positively trending EBITDA growth rate, Potash displays a revenue growth of 16.7 percent and a book value growth of 18 percent. The company has a dividend yield of 1.69 percent.

GuruFocus ranks Potash the Financial Strength of 7 and the Profitability and Growth rank of 9.

View more in Potash’s 10-Year Financials.

Home Capital Group (HCG)

Holding company Home Capital Group has a 10-year EBITDA growth rate of 23.1 percent and a business predictability rank of 4 stars.

It currently trades at $60.45, and has delivered 50.74 percent in market value in the last three years. In the last five years, it has gone up 68.38 percent.

1358446435214.pngTSX:HCG data by GuruFocus.com

Home Capital Group operates through its principal subsidiary, Home Trust Company, a federally regulated trust company that offers deposit, non-residential mortgage lending, retail credit and credit card issuing services. It conducts its business across Canada, and has branch offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.

Home Capital’s latest posting of quarterly fiscal results were of the quarter ending Sept. 30. Its net income for the quarter experienced an increase of 18.3 percent comparable to the previous year’s period, and 16.7 percent for its first nine months in 2012.

Increases for the quarter were also found in its diluted earnings per share, growing 18.7 percent in the quarter and 16.4 percent in the first nine months of Home Capital.

Additionally, the company’s return on equity exceeded its performance objective of 20 percent, achieving 25.6 percent for the quarter.

Home Capital’s last reported quarterly dividend payment was December, dispersing 26 cents per share, representing a 4-cent per share increase in quarterly dividend and equivalent to an annual dividend of $1.04 per share.

Currently, Home Capital’s dividend yield is 1.49 percent.

View more in Home Capital’s 10-Year Financials.

Agrium Inc. (AGU)

Alberta-based agricultural products retail supplier Agrium Inc. has a 10-Year EBITDA growth rate of 20.2 percent, and a 4-star rank in business predictability.

The stock is trading at $108.50, up almost 2 percent this afternoon. In three years it gained 71 percent and 67 percent in five years.

Gurus who hold the stock include John Burbank, David Dreman and Scott Black.

1358449854171.pngAGU data by GuruFocus.com

Agrium is a global wholesale producer and marketer of three major agricultural nutrients and supplier of specialty fertilizers in North America, South America and Australia.

Its third quarter results released in November revealed that it fell short compared to the same period in 2011, due to the downtime it experienced in its potash mine expansion, and a weaker potash market due to its ongoing negotiations with India and China.

Today, it distributed a dividend a $0.50 per share dividend to its stakeholders, moving its semi-annual payment to a quarterly payment. Currently, its dividend yield is 0.9 percent.

View more in Agrium’s 10-Year Financials.

Rogers Communications Inc. (RCI)

Diversified communications and media company Rogers Communications has a 10-year EBITDA growth rate of 12.5 percent, and a five-star business predictability rank on GuruFocus.

It currently trades at $46.12, its stock up 1.38 percent this afternoon.

In three years, its stock has gained 47.89 percent in market value, 21.34 percent in five years.

Gurus who have stake in Rogers include Mario Gabelli, Ray Dalio and Jim Simons.

1358450830818.pngRCI data by GuruFocus.com

Market capitalized at $23.87 billion, Rogers is Canada’s largest provider of wireless voice and data communications services and leading provider of cable TV, high speed internet and telephone services. Rogers Media is engaged in radio and TV broadcasting, televised shopping, magazines, trade publications, sports entertainment and digital media.

Its third quarter report indicated increases in revenue, adjusted operating profit, adjusted diluted earnings per share and pre-tax free cash flow.

For the past 12 months, Rogers upheld a revenue growth rate of 5.3 percent. In 10 years, it grew at a rate of 12.5 percent.

Its quarterly dividend distributed on Jan. 2 totaled $0.395 per share. The company has a dividend yield of 3.5 percent.

View more in Rogers’ 10-Year Financials.

All week, GuruFocus has been active in utilizing Canada-traded stocks in our screens. Check out these following articles for more:

Canadian Stocks at 52-Week Lows

Undervalued Predictable Canada-Traded Companies

Canada’s Highest Dividend-Yield Stocks



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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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