Today, Stockchase Insights and Jim Cramer - Mad Money commented about whether AAPL, WBA, CAH, UAA, DKNG, SHCO, COLM, MDB, FMC, PEP, TTWO, PINS, ARMH, MCK, DIS, YUM, CVS, AMGN, F, LIN, SPOT, CARR, LLY, SPG, MCD, CAT, WCP.TO, TEAM are stocks to buy or sell.
Company Highlight: Terravest Industries Inc. (TVK)
TVK is a Canadian company that operates as a serial acquirer of niche equipment and services for a variety of markets including transportation, mining, transportation, etc.
Over the past 10 years, its price has compounded at a 31.6% annualized rate, supported by healthy growth in fundamentals, and TVK’s sales growth during that period was 26.6% CAGR. Solid sales growth was driven through a combination of organic growth and acquisitions It currently has a market cap of $900 million, a reasonable forward P/E of 21.4X, and a decent financial position with a net debt/EBITDA of around 2.0x.
TVK has a disciplined and opportunistic approach to capital allocation. It has a dividend yield of 1.2% as TVK reinvested heavily back into the business. In 2021, TVK opportunistically reduced its outstanding shares by 6% while the valuation was cheap.
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WCP cut its dividend in 2016 and 2020, but in recent years it has not. Cash from operations is highly positive at $1.822B in the last-twelve-months along with a solid balance sheet which makes us believe that the dividend is probably secure, barring a collapse in commodity prices. . The nine month payout ratio was 76%.
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