Dollarama Inc. DOL-T, a chain of discount stores, has a colossal EVA on capital of 24.5 per cent, indicating that the company generates significant value from its invested capital. The EPI of Dollarama is at 5.1, the highest on our list, which further strengthens the assertion of value creation. The company is commonly viewed as a sound recession play, since its sales tend to be resilient during recession. Dollarama’s P/E ratio of 29.
BRP Inc. DOO-T designs, manufactures and distributes power sports vehicles and marine products, and its share price rose 30.2 per cent over the past year, reflecting positive market sentiment toward the company’s performance despite the looming risk of a recession. BRP also achieved the highest return on capital of our list, at 30.2 per cent, prompting us to conclude that the company must have significantly beaten market expectations over the past year.
Constellation Software Inc. CSU-T, a conglomerate focused on vertical software businesses, is trading at just 4.8 per cent below its all-time high as of last Friday’s close, a performance that certainly surpasses most technology stocks. Also, with a market cap of $48.5-billion, it is the second largest company in our screen.
Investors are advised to do further research before investing in any of the companies listed in the accompanying table.Anthony Ménard, CFA, is vice-president of data management at Inovestor. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.