GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Mawer's Small Cap-Centric Fund Reports Top Five Fourth Quarter Stocks

Monica Wolfe

Monica Wolfe

118 followers

The Mawer New Canada Fund (Trades, Portfolio) reported its fourth quarter financials yesterday which highlighted 54 stocks, with five being new buys over the quarter. The fund’s portfolio is valued at $1.176 billion and maintains a quarter-over-quarter turnover of 10%.

This Canadian fund is managed by Martin Ferguson, CFA and Jeff Mo, CFA. According to Mawer’s website their Mawer New Canada Fund (Trades, Portfolio) invests primarily in securities of smaller Canadian companies. It also reports that Treasury bills or short-term investments, not exceeding three years to maturity, may also be used on occasion.

The following five companies represent the five largest holdings of the Mawer Canadian Equity Fund (Trades, Portfolio).

Canadian Energy Services & Technology Corp. (TSX:CEU)

The Mawer New Canada Fund (Trades, Portfolio)’s largest position over the past quarter was in Canadian Energy Services & Technology where they held 3,146,090 shares of the company’s stock. This position makes up for 6.2% of the fund’s portfolio as well as 4.74% of the company’s shares outstanding.

The fund reduced their position -8.06% over the past quarter, selling a total of 275,725 shares of the company’s stock. They sold these shares in the quarterly price range of C$16.60 to C$23.24. Since then the price per share has increased roughly 47%.

Mawer’s historical holding history:

1395861666566.png

Canadian Energy Services & Technology specializes in the design and implementation of drilling fluid solutions for the North American oil and gas industry, and in particular for horizontal and directional resource plays drilling.

Canadian Energy Services & Technology’s historical revenue and net income:

1395867933453.png

The analysis on Canadian Energy Services & Technology reports that the company has issued C$220.708 million of debt over the past three years, its dividend yield is close to a 10-year low and its price is close to a 10-year high. The analysis also notes that the company’s operating margin is expanding which is generally a good sign.

The Peter Lynch Chart suggests that the company is currently overvalued:

1395868112542.png

Canadian Energy Service and Technology has a market cap of C$1.93 billion. Its shares are currently trading at around C$28.79 with a P/E ratio of 51.40 and a P/S ratio of 2.87. The dividend yield of the company’s stock is at 2.52%. The company had an annual average earnings growth of 44.60% over the past five years.

Constellation Software (TSX:CSU)

Mawer Fund’s second largest position is in Constellation Software where the fund holds on to 323,834 shares of the company’s stock, representing 6.2% of their assets managed as well as 1.53% of the company’s shares outstanding.

During the past quarter the fund reduced their position -15.12% by selling 57,700 shares of the company’s stock. They sold these shares in the fourth quarter price range of C$178.25 to C$226.23 per share. The company’s price per share Is not trading up approximately 34.4%.

Mawer’s historical holding history:

1395851911212.png

Constellation is engaged in the development, installation, and customization of enterprise software and related professional services and support. The company acquires, manages, and builds vertical market software businesses that provide software solutions.

Constellation Software’s historical revenue and net income:

1395868786723.png

The analysis on Constellation reports that the company’s P/B, Price and P/S ratio are all at a 5-year high, while its dividend yield is at a 5-year low. It also notes that the company has issued $425.82 million of debt over the past three years.

The Peter Lynch Chart suggests that their company is currently overvalued:

1395868811066.png

Constellation Software has a market cap of C$5.58 billion. Its shares are currently trading at around $263.43 with a P/E ratio of 53.00 and a P/S ratio of 4.12. The company had an annual average earnings growth of 22.90 over the past ten years.

Home Capital Group (TSX:HCG)

The fund’s third largest holding goes to Home Capital Group where they maintain 1,686,480 shares of the company’s stock. This position makes up for 5.8% of the fund’s portfolio as well as for 4.87% of the company’s shares outstanding.

Over the past quarter the fund decreased their holdings -8.16% by selling 149,908. They sold these shares at the average quarterly price range of C$71.94 to C$85.78 per share, and since then the price per share is down approximately 44.2%.

Mawer’s historic holding history:

1395866357533.png

Home Capital Group operates mainly through its federally regulated subsidiary, Home Trust Company, which offers deposits, residential and non-residential mortgage lending, securitization of insured residential first mortgage products, consumer lending, Visa products and payment card services.

Home Capital Group’s historical revenue and net income:

1395869173742.png

The analysis on Home Capital Group reports that the company has shown predicable revenue and earnings growth, its dividend yield is near a 5-year high and its P/S, P/B and P/E ratios are all trading at historic lows.

The Peter Lynch Chart suggests that the company is currently overvalued:

1395869224571.png

Home Capital Group has a market cap of $1.53 billion. Its shares are currently trading at around $43.97 with a P/E ratio of 12.10 and a P/S ratio of 6.20. The company had an annual average earnings growth of 19.60% over the past ten years.

GuruFocus rated Home Capital Group the business predictability rank of 4.5-star.

Stantec (TSX:STN)

The Mawer New Canada Fund (Trades, Portfolio)’s fourth largest position is in Stantec where they hold on to 1,004,091 shares of the company’s stock. This holding makes up for 5.6% of their total portfolio as well 2.17% of the company’s shares outstanding.

Over the past quarter Mawer reduced their holdings -13.4% by selling a total of 155,377 shares of the company’s stock. They sold these shares in the quarterly price range of C$52.60 to C$72.05. Since then the price per share is trading up approximately 5.2%.

Mawer’s holding history as of the close of the fourth quarter:

1395866811579.png

Stantec provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics for infrastructure and facilities projects. The Company provides professional consulting services in the infrastructure and facilities market on a fee-for-service basis.

Stantec’s historical revenue and earnings growth:

1395869717557.png

The analysis on Stantec reports that the company’s dividend yield is near a 1-year low, its price is near a 10-year high and its P/S ratio is near a 5-year high. The analysis also notes that the company’s operating margin is expanding, its Piotroski F-Score is high and it has shown predictable revenue and earnings growth.

The Peter Lynch Chart suggests that the company is currently overvalued:

1395869877758.png

Stantec has a market cap of C$3.13 billion. Its shares are currently trading at around $67.09 with a P/E ratio of 21.80 and a P/S ratio of 1.40. The company had an annual average earnings growth of 14.60% over the past ten years.

GuruFocus rated the business predictability rank of 4.5-star.

Stella-Jones (TSX:SJ)

The fund’s fifth largest position goes to Stella-Jones where they maintain 2,277,856 shares of the company’s stock. This position makes up for 5.3% of the fund’s total portfolio as well as for 3.32% of the company’s shares outstanding.

Over the past quarter the fund decreased their holdings -1.46% by selling 33,748 shares of the company’s stock. The guru sold these shares in the price range of C$26.07 to C$28.98 per share, and since then the price per share has increased approximately 12.4%.

Mawer New Canada Fund (Trades, Portfolio)’s historical holding history:

1395867321934.png

Stella-Jones operates within one business segment, the production and sale of pressure treated wood for several different product groups.

Stella-Jones’ historical revenue and earnings growth:

1395870106105.png

The analysis on Stella-Jones reports that the company’s dividend yield is near a 5-yeaar low and that its price is near a 10-year high. The anlaysis also notes that the company has shown predictable revenue and earnings growth and that over the past three years the company has issued C$43.27 million of debt.

The Peter Lynch Chart suggests that the company is currently overvalued:

1395869968020.png

Stella-Jones has a market cap of C$2.12 billion. Its shares are currently trading at around C$30.80 with a P/E ratio of 23.50 and a P/S ratio of 2.29. The company had an annual average earnings growth of 22.10% over the past ten years.

GuruFocus rated Stella-Jones the business predictability rank of 4-star.

You can check out the Mawer New Canada Fund’s complete fourth quarter portfolio here.

Try a free 7-day premium membership trial here.


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide