Six Canadian energy stocks that could benefit from a weaker dollar

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We are looking for Canadian energy companies with higher revenue exposure to the United States than Canada

and the U.S. Federal Reserve will announce their latest decisions on interest rates. The BoC previously cut rates in May by one-quarter percentage point while the Fed left rates unchanged in June at between 5.25 to 5.5 per cent. If the BoC continues to lower rates while the Fed holds steady, it could lead to a devaluation of the Canadian dollar relative to the U.S. dollar.

We ranked the six remaining companies using a multifactor ranking of financial ratios: cost of goods sold as a percentage of sales, net debt to EBITDA , asset turnover, price to earnings, and enterprise value to EBITDA. Given the high interest-rate environment, a company’s ability to effectively manage and meet its variable and fixed costs is paramount. Consequently, companies with a low cost of goods sold as a percentage of sales and a low net debt to EBITDA ratio are ideal.

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of

 

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