There’s much more to Canadian technology than BlackBerry. Several other domestic innovators are quietly raking in the cash, says Agilith Capital portfolio manager Patrick Horan. The S&P/TSX Capped Info Tech Index is up 31% for the last 12 months—far better than the overall market. Consider these three quickly growing cash cows. Fast growing Canadian tech stocks:
TOP PICK! SiriusXM Canada (TSX: XSR)
This Toronto satellite radio company—which is not a subsidiary or even part of the U.S. SiriusXM—has an attractive 4.5% dividend that expanded by 20% in 2013, says Horan.
8.5: 2015 EV/EBITDA earnings
Mitel Networks (TSX: MNW)
This Ottawa-based global telecommunications firm, originally founded by Michael Cowpland and Terry Matthews, works with large corporations and recently merged with Europe’s Aastra.
6.8: 2015 EV/EBITDA earnings
CGI Group (TSX: GIB.A)
Despite a few bumpy months, this busy Montreal IT firm is generating tons of cash and buying back shares for the first time in a year. Horan expects shares to rise from $35 to $40.
6.7: 2015 EV/EBITDA earnings
EV/EBITDA is a ratio used to evaluate the value of a company (enterprise value) by taking debt into account. A low ratio indicates that a company might be undervalued