Mawer Canadian Equity Fund (Trades, Portfolio)’s top 10 transactions of the second quarter leaned toward energy companies, but the fund bought or sold shares in Canadian banking, communication, real estate, railroad and packaging companies as well.
In its largest second-quarter transaction, the fund nearly quadrupled its stake in Hydro One Ltd. (TSX:H, Financial), a Toronto-based electric company, with the purchase of 1,371,531 shares for an average price of 23.51 Canadian dollars ($17.93 in U.S. currency) per share. The deal had a 1.72% impact on the fund’s portfolio.
The fund’s stake, now 1,857,741 shares, is 0.31% of Hydro One’s outstanding shares and 2.33% of the fund’s total assets. The fund is Hydro One’s leading shareholder among the gurus.
Hydro One has a price-earnings (P/E) ratio of 18.8, a forward P/E of 21, a price-book (P/B) ratio of 1.7 and a price-sales (P/S) ratio of 1.9. GuruFocus gives Hydro One a Financial Strength rating of 4/10 and a Profitability and Growth rating of 5/10, with return on equity (ROE) of 7.93% that is lower than 51% of the companies in the Global Utilities – Regulated Electric industry and return on assets (ROA) of 3.00% that is higher than 50% of the companies in that industry.
Hydro One sold for 26.19 Canadian dollars per share Friday. The DCF Calculator gives Hydro One a fair value of 14.88.
The fund invested in 420,522 shares in BCE Inc. (TSX:BCE, Financial), a telecommunications and mass media company based in Montreal, for an average price of 58.38 Canadian dollars per share. The acquisition had a 1.24% impact on the fund’s portfolio.
The holding is 0.05% of BCE’s outstanding shares and 1.24% of the fund’s total assets. The fund is BCE’s leading shareholder among the gurus.
BCE has a P/E of 19.4, a forward P/E of 16.6, a P/B of 4.3 and a P/S of 2.4. GuruFocus gives BCE a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10, with ROE of 16.54% that is higher than 76% of the companies in the Global Telecom Services industry and ROA of 6.00% that is higher than 72% of the companies in that industry.
BCE sold for 61.35 Canadian dollars per share Friday. The DCF Calculator gives BCE a fair value of 33.71 Canadian dollars.
The fund also acquired a 3,797,035-share stake in Pure Industrial Real Estate Trust (TSX:AAR.UN, Financial), a Canadian REIT with offices in Vancouver, British Columbia and Toronto, Ontario, for an average price of 4.75 Canadian dollars per share. The purchase had a 0.94% impact on the fund’s portfolio.
The stake is 1.75% of Pure Industrial’s outstanding shares and 0.94% of the fund’s total assets. The fund is Pure Industrial’s only shareholder among the gurus.
Pure Industrial has a P/E of 8, a forward P/E of 10.2, a P/B of 1 and a P/S of 5.9. GuruFocus gives Pure Industrial a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10, with ROE of 12.75% that is higher than 77% of the companies in the Global REIT – Industrial industry and ROA of 6.14% that is higher than 74% of the companies in that industry.
Pure Industrial sold for 5.48 Canadian dollars per share Friday. The DCF Calculator gives Pure Industrial a fair value of 7.28 Canadian dollars with a 25% margin of safety.
The fund trimmed its stake in Enerflex Ltd. (TSX:EFX, Financial), an oil and gas equipment and services company based in Calgary, Alberta, by nearly 96%. The fund sold 1,076,715 shares for an average price of 11.02 Canadian dollars per share. The transaction had a -0.77% impact on the fund’s portfolio.
The fund’s remaining holding of 45,843 shares is 0.06% of Enerflex’s outstanding shares and 0.02% of the fund’s total assets. The fund is Enerflex’s only shareholder among the gurus.
Enerflex has a P/B of 1 and a P/S of 0.8. GuruFocus gives Enerflex a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10, with ROE of -7.24% and ROA of -3.76% that are higher than 50% of the companies in the Global Oil & Gas Equipment & Services industry.
Enerflex sold for 13.29 Canadian dollars per share Friday. The DCF Calculator gives Enerflex a fair value of -10.59 Canadian dollars.
The fund boosted its position in Canadian Pacific Railway Ltd. (TSX:CP, Financial), a Calgary, Alberta-based railroad, by nearly 48% with the purchase of 89,600 shares for an average price of 170.32 Canadian dollars per share. The deal had a 0.72% impact on the fund’s portfolio.
The holding, now 277,802 shares, is 0.19% of Canadian Pacific’s outstanding shares and 2.23% of the fund’s total assets. The fund is the railway’s leading shareholder among the gurus.
Canadian Pacific has a P/E of 20.8, a forward P/E of 16.3, a P/B of 6.4 and a P/S of 5. GuruFocus gives Canadian Pacific a Financial Strength rating of 4/10 and a Profitability and Growth rating of 8/10, with ROE of 31.43% that is higher than 95% of the companies in the Global Railroads industry and ROA of 8.04% that is higher than 85% of the companies in that industry.
Canadian Pacific sold for 201.43 Canadian dollars per share Friday. The DCF Calculator gives Canadian Pacific a fair value of 104.66 Canadian dollars.
The fund pared its position in CCL Industries Inc. (TSX:CCL.B, Financial), a Toronto-based packaging company, by more than 13% with the sale of 56,500 shares for an average price of 222.48 Canadian dollars per share. The transaction had a -0.68% impact on the fund’s portfolio.
The fund’s remaining holding of 377,082 shares is 1.07% of CCL’s outstanding shares and 4.09% of the fund’s total assets. The fund is CCL’s only shareholder among the gurus.
CCL has a P/E of 28.6, a forward P/E of 21.1, a P/B of 5.5 and a P/S of 2.6. GuruFocus gives CCL a Financial Strength rating of 6/10 and a Profitability and Growth rating of 9/10, with ROE of 20.30% that is higher than 82% of the companies in the Global Packaging & Containers industry and ROA of 8.94% that is higher than 81% of the companies in that industry.
CCL sold for 250.77 Canadian dollars per share Friday. The DCF Calculator gives CCL a fair value of 182.72 Canadian dollars.
The fund increased its stake in Cenovus Energy Inc. (TSX:CVE), a Calgary, Alberta-based oil company, by nearly 64% with the acquisition of 740,981 shares for an average price of 17.54 Canadian dollars per share. The deal had a 0.64% impact on the fund’s portfolio.
The fund’s stake, now 1,900,336 shares, is 0.23% of Cenovus’ outstanding shares and 1.64% of the fund’s total assets. The fund is Cenovus’ leading shareholder among the gurus.
Cenovus has a P/E of 21.2, a P/B of 1.4 and a P/S of 1.4. GuruFocus gives Cenovus a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10, with ROE of 6.44% that is higher than 68% of the companies in the Global Oil & Gas Integrated industry and ROA of 3.05% that is higher than 65% of the companies in that industry.
Cenovus sold for 19.11 Canadian dollars Friday. The DCF Calculator gives Cenovus a fair value of 9.63 Canadian dollars.
The fund sold its 403,571-share holding in Shawcor Ltd. (TSX:SCL), an oil and gas equipment services company with offices in Toronto and Houston, for an average price of 24.68 Canadian dollars per share. The divestiture had a -0.61% impact on the fund’s portfolio.
Mawer New Canada Fund (Trades, Portfolio) is Shawcor’s leading shareholder among the gurus with 251,708 shares in its portfolio. The holding is 0.39% of Shawcor’s outstanding shares and 0.72% of Mawer New Canada Fund (Trades, Portfolio)’s total assets.
Shawcor has a P/E of 59.9, a forward P/E of 19.9, a P/B of 2.1 and a P/S of 1.3. GuruFocus gives Shawcor a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10, with ROE of 3.28% that is higher than 73% of the companies in the Global Oil & Gas Equipment & Services industry and ROA of 1.75% that is higher than 75% of the companies in that industry.
Shawcor sold for 32.32 Canadian dollars per share Friday. The DCF Calculator gives Shawcor a fair value of 5.78 Canadian dollars.
The fund increased its position in Bank of Montreal (TSX:BMO), a Montreal-based financial services company, by more than 25%. The fund bought 146,028 shares for an average price of 78.34 Canadian dollars per share. The transaction had a 0.58% impact on the fund’s portfolio.
The holding, now 726,228 shares, is 0.11% of Bank of Montreal’s outstanding shares and 2.87% of the fund’s total assets. The fund is Bank of Montreal’s only shareholder among the gurus.
Bank of Montreal has a P/E of 13, a forward P/E of 11.5, a P/B of 1.5 and a P/S of 2.7. GuruFocus gives Bank of Montreal a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10, with ROE of 11.12% that is higher than 69% of the companies in the Global Banks – Global industry and ROA of 0.66% that is lower than 65% of the companies in that industry.
Bank of Montreal sold for 87.02 Canadian dollars per share Friday. The DCF Calculator gives Bank of Montreal a fair value of 71.81 Canadian dollars.
The fund increased its stake in Royal Bank of Canada (TSX:RY), Canada’s largest bank with offices in Toronto and Montreal, by nearly 13% with the purchase of 135,210 shares for an average price of 74.21 Canadian dollars per share. The deal had a 0.5% impact on the fund’s portfolio.
The fund’s stake, now 1,210,113 shares, is 0.08% of Royal Bank’s outstanding shares and 4.46% of the fund’s total assets. Leith Wheeler Canadian Equity (Trades, Portfolio) is Royal Bank’s leading shareholder among the gurus with a stake of 1,959,225 shares. The stake is 0.13% of Royal Bank’s outstanding shares and 6.24% of Leith Wheeler’s total assets.
Royal Bank has a P/E of 11.9, a forward P/E of 11.3, a P/B of 1.9 and a P/S of 3.3. GuruFocus gives Royal Bank a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10, with ROE of 15.48% that is higher than 83% of the companies in the Global Banks – Global industry and ROA of 0.91% that is higher than 52% of the companies in that industry.
Royal Bank sold for 81.46 Canadian dollars per share Friday. The DCF Calculator gives Royal Bank a fair value of 88.92 Canadian dollars with a margin of safety of 8%.
Disclosure: I do not own any stocks mentioned in this article.
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