Mawer New Canada Group acquired three new holdings in the second quarter. They are Boyd Group Income Fund (TSX:BYD.UN, Financial), Airboss of America Corp. (TSX:BOS, Financial) and Birchcliff Energy Ltd. (BIREF, Financial).
Mawer was established in January 1988. It is currently managed by Jeff Mo. The fund primarily invests in smaller Canadian companies. They use a research-driven, bottom-up process as a basis for their investment philosophy. The fund currently holds stock in 54 companies.
Boyd Group
In Boyd Group, Mawer purchased 266,420 shares for an average price of 73.97 Canadian dollars ($57.13) per share. The transaction had an impact of 1.7% on the portfolio. The stock has gained 16% since then.
Boyd Group is an autobody collision repair company. It has a market cap of CA$1.5 billion with an enterprise value of CA$1.6 billion. It has a forward price-earnings (P/E) ratio of 30.6, a price-book (P/B) ratio of 6.6 and a price-sales (P/S) ratio of 1.3.
GuruFocus ranked its financial strength 6 of 10 and its profitability and growth 7 of 10. The company’s operating margin is 6.5% and its net margin is -0.5%. Its Piotroski F-Score is 4, indicating a stable financial condition. Its Altman Z-Score is 4.1, placing it in the safe zone.
Mawer New Canada Group is the sole investor among the gurus. The company is in the fund’s top 25 holdings.
Airboss
In Airboss, Mawer purchased 435,034 shares for an average price of CA$14.85 per share. The transaction had an impact of 0.55% on the portfolio. The stock has decreased 10% since then.
Airboss develops, manufactures and sells proprietary rubber-based products for transportation, defense and industrial markets. It has a market cap of CA$308.7 million and an enterprise value of CA$382.7 million. It has a P/E of 13.03 with a forward P/E of 11.9. Its P/B is 2.12 and its P/S is 0.77.
GuruFocus ranked the company’s financial strength 6 of 10 and its profitability and growth 7 of 10. It has an operating margin of 8.5% and a net margin of 5.9%. Its Piotroski F-Score is 6, indicating a stable financial condition. Its Altman Z-Score is 3.9, placing it in the safe zone.
Mawer New Canada Group is the sole investor among the gurus.
Birchcliff
In Birchcliff, Mawer purchased 864,547 shares for an average price of $4.29 per share. The transaction had an impact of 0.53% on the portfolio. The stock has gained 61% since then.
Birchcliff is an intermediate oil and gas company engaged in the exploration, development, production and acquisition of petroleum and natural gas reserves in Western Canada. It has a market cap of $1.8 billion with an enterprise value of $2.4 billion. It has a P/B of 2.3 and a P/S of 5.3.
GuruFocus ranked its financial strength 4 of 10 and its profitability and growth 7 of 10. The company’s operating margin is 0.18% and its net margin is -15.2%. Its Piotroski F-Score is 3, indicating a poor financial condition. Its Altman Z-Score is 1.6, placing it in the distress zone, which implies the possibility of bankruptcy in the next several years.
Mawer New Canada group is the largest shareholder in Birchcliff, followed by Cognios Capital LLC.
Disclosure: I do not own stock in any companies mentioned in the article.
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