The company is also helping certain states expand lottery sales onto the internet. Recent acquisitions include manufacturers of charitable gaming machines, interactive devices that are placed in bars. While there’s no guarantee growth will continue that quickly, the company should be able to continue increasing the bottom line by making further acquisitions and further growing scratch ticket sales. From 2010 to 2021, Pollard grew EBITDA from $18.2 million to $82.45 million, more than quadrupling profits in 11 years. It’s working, which is a win for both Pollard and cash-starved governments. It does this by constantly redesigning tickets and by making retail displays more enticing. Scratch tickets aren’t a terribly sexy business, but Pollard and its partners are working hard to increase both the numbers of tickets sold and total revenue generated from ticket sales.
It’s Canada’s largest provider of instant-win scratch tickets, as well as offering lottery services to various jurisdictions across North America including most Canadian provinces, Michigan, Maryland, and Arizona, along with several other states.Īpproximately two-thirds of the company’s revenue comes from the United States. Pollard Banknote ( TSX:PBL) manufacturers, develops, and sells lottery and charitable gaming products to customers around the world.
Shares also pay a solid 2.15% yield, a payout that has been increased annually since 2015. It has barely begun to tap this lucrative revenue source.ĭespite its fantastic growth potential, Goeasy has a cheap valuation, with shares trading hands at just 14x forward earnings as I type this. The company can also sell ancillary products with its loans, including things like layoff insurance and life insurance on secured loans. Besides its trademark loan, the company also offers loans secured by real property and things like furniture financing. Management’s ultimate goal is to dominate the non-prime credit market in Canada, a segment the company estimates is worth some $30 billion annually. The bottom line grew even faster, increasing from $0.11 per share to $8.76 per share during the same time.Īnalysts expect the torrid growth rate to continue, too, with earnings projected to surpass $12 per share in 2022.That right there, is small-cap potential I've been talking about. Since 2001, the company has grown its top line by 12.97% each year, increasing revenue from $66 million to $652 million in 2021. This might seem a little excessive to you or me, but for folks who previously got payday loans at a rate of 400%+ annually, they seem like a bargain in comparison. The product that really sent Goeasy to the stratosphere is its unsecured loan that comes with a whopping 45%+ interest rate. It boasts operations in all ten provinces, more than one million customers served, and some exceptional long-term growth. ( TSX:GSY) has quietly grown into Canada’s top alternate finance company, and is listed on our best Canadian bank stocks to buy today. Let’s take a closer look at seven of the best Canadian small-cap stocks, the kinds of companies that can put a real jolt into your portfolio. That’s when the real magic starts to happen. Small-time investors like you and me can easily build up a major position in the company and then wait until institutional investors discover the name.
If you're new and just learning how to buy stocks, the secret to crushing the overall stock market using small-cap stocks is to identify the kinds of companies that have major potential that many other investors haven’t identified yet. There are several reasons for this, including better growth potential, more attractive valuations, momentum potential when investors start to fall in love with an individual stock, and worse liquidity. In fact, various studies prove the best Canadian small-cap stocks tend to outperform larger Canadian stocks over the long-term. They offer too much return potential to be ignored. Small-cap stocks are integral to a smart, diversified portfolio. Just about every serious investor agrees.