Kalkine Media - Summary
The S&P/TSX Capped Financial Index rose 0.74% on July 19, 2023, taking the main market index higher. On the same day, the S&P/TSX Composite Index rose by 114 basis points, which corresponds to a 0.56% increase in the index.
- The S&P/TSX Capped Financial Index rose 0.74% and the S&P/TSX Composite Index rose by 114 basis points on July 19, 2023.
- Timbercreek Financial, a commercial real estate lender in the non-banking segment, has a P/E ratio of 10.40x based on Wednesday’s closing price of US$7.59.
- Tricon Residential Inc., a rental housing firm, has a P/E ratio of 4.32x based on Wednesday’s closing price of US$12.26.
The market has been sensitive to changes seen in the financial sector, which includes an interest rate hike of 25 basis points in July. Banking sector stocks also saw an uptick in share prices in the aftermath of this decision.
On that note, here are two financial sector stocks to examine in the backdrop of ongoing momentum seen in the sector:
Timbercreek Financial Corp. (TSX: TF)
Timbercreek Financial is a commercial real estate lender in the non-banking segment. The company’s products range from short-term financing solutions to professional support for real estate investors.Timbercreek reported net investment income of US$32.7 million in Q1 2023, which was 44.2% higher as compared to Q1 2022. At the same time, the net income also rose to US$18.1 million in Q1 2023 from US$13.8 million in Q1 2022. The quarter benefitted from strong interest income and healthy mortgage portfolio.
Image source: ©2023 Kalkine®; Data source: Company Reports
Timbercreek announced a monthly cash dividend of US$0.0575 per common share, which was paid on July 14, 2023.
TF has a P/E ratio of 10.40x based on Wednesday’s closing price of US$7.59. The stock recorded a monthly increase of 0.93% and a YTD increase of 6.01% based on Wednesday’s closing price.
Tricon Residential Inc. (TSX: TCN)
Tricon, a rental housing firm, manages rental homes and multi-family rental units through a tech-enabled operating platform. It has a market cap of US$3.34 billion.Tricon reported net income from continuing operations of US$29.4 million in March 2023 quarter, compared to US$150.12 million in March 2022 quarter. The net operating income rose 17.9% during the quarter for the single-family rental portfolio.
Image source: ©2023 Kalkine®; Data source: Company Reports
The company also stated that its positive momentum carried on in the second quarter of 2023. Home rent grew 7.6%, which included a 11.9% growth on new leases and 6.5% growth on renewals in April 2023. Tricon also paid a dividend of US$0.058 per share.
Tricon has a P/E ratio of 4.32x based on Wednesday’s closing price of US$12.26. The stock rose 5.33% monthly and by 16.65% on YTD basis as on July 20, 2023.