Panic-Proof Portfolio TOP PICK
North American Construction Group(NOA-T)
16/02/2022 at 07:00pm
Stockchase Research Editor: Michael O'Reilly Reporting Q4 net income up 53% over the year, we again reiterate NOA as a TOP PICK. Support work at the Fort Hills and Kearl mines is doing well along with benefits from the recent Australian component supplier acquisition. It trades at 14x earnings compared to peers at 17x. We like how cash flow is increasing while they pay down debt. It trades just over 2x book and pays a small dividend backed by a payout ratio under 15% of cash flow. Management announced the dividend will double to $0.32 per annum. We recommend trailing the stop up (from $15.00) to $18.50, looking to achieve $25.50 -- upside potential over 24%. Yield 0.84% (Analysts’ price target is $25.13)
The Panic-Proof Portfolio (Stockchase Research)
$19.910
Unknown