December 13, 2018

Genivar Inc. GNV

 

Genivar Inc. (GNV) is one of Canada’s top engineering picks for growth and value.  It offers services in the fields of multiple types of buildings, environmental projects, industrial needs, Municipal infrastructure, energy, project management, transportation, mining, and telecommunications.  The company describes itself as, “A leading Canadian Engineering Services firm providing private and public sector clients with a comprehensive range of professional consulting services, through all execution phases of a project including planning, design, constructions and maintenance.”  Genivar traces its routes back to 1959 in Quebec City, when two firms started that later merged in 1987 to form Genivar Inc.

 

GENIVARSince this merger, Genivar Inc. (GNV) has expanded rapidly, as they have been able to broaden their range of services through acquisition of other engineering companies.  This aggressive acquisition strategy has also allowed them to build an international presence.  Genivar still has the majority of their operations in Canada and employs about 4,500 people overall.  They are especially well regarded within the industry for clients who are looking for assistance in the earlier stages of their projects.

 

Genivar (GNV) was recently recognized as the “2nd hottest company in Canada” by the Zweig Letter Hot Firm List in 2010.  They have not missed a beat in the immediate aftermath as the company seen its revenues increase 18.6% in the first quarter of 2011.  Genivar Inc. was reorganized on January 1st 2011 as they switched their structure to that of a corporation.  Until this date they had been taking advantage of the Canadian tax loophole as an income trust (as had been many other companies).  While announcing the company’s latest acquisitions, Pierre Shoiry, President and Chief Executive of Genivar stated, “We have made some significant investments in our systems and support services over the past 18 months, and I wish to thank our employees for their continued support and efforts throughout this transition period.  We now have a stronger, scalable organization.”

 

Genivar (GNV) management claims that much of its success is due in part to their unique company vision and values that are prominently displayed in their official communications.  Genivar’s vision reads as, “Genivar is a leading global firm of community-minded people who make a difference,” and their values statement is, “Our values reflect who we are and how we interact with each other, whether with the colleagues, clients, unitholders or other stakeholders, Client Focus, Respect, Empowerment, Teamwork.”

Genivar Inc. (GNV) looks to be well positioned and offer investors some solid growth prospects.  They offer an impressive 6.59% dividend yield that will probably stabilize at a slightly lower rate as the company completes its transition from an income trust structure to a new corporate look (this also explains why the dividend has sunk 7.69% over the last year, this is fairly standard for all the Canadian companies that were operating under the Income Trust guidelines).  With almost no debt to speak of, and operating out of a well-established base, Genivar offers many compelling reasons to invest in their continued growth.

 

 GNV Canadian Dividend Stock Graph

TSE GNV

 GNV Canadian Dividend Stock Metrics

TickerNamePriceDividend YieldPayout RatioDEBT_TO_MKT_CAPDividend Growth 5 yearsDividend Growth 1 years
GNVGenivar Inc30.334.95120.340.01225235#N/A Field Not Applicable-1.282054

 

 

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