GIBA is one of the largest IT consulting firms in the world and one of Canada’s most successful publicly traded companies. GIBA has been a long-term compounder with a 10-year annualized growth rate of 14.65%. While GIBA competes in a crowded space with some of the largest international companies such as Accenture and IBM, GIBA has been steadily able to grow its business by winning large contracts and acquiring companies adding to its portfolio of business. GIBA is a stable business that has a large backlog, generates high cash flows, and buys back shares. We are initiating coverage at a ‘B+.’

CCL.B is a leader in the label and special packaging industry. In 2023, the company was faced with unfavourable macroeconomic trends but was able to continue to grow revenue. Due to the nature of CCL.B’s business, the company is very exposed to macroeconomic and consumer spending trends, but management appears positive for what lies ahead. Following the increase in dividend along with positive performance and outlook for CCL.B, we are maintaining our rating of a ‘B+.’

NWC is a stable consumer staples name that serves in niche markets of remote areas with small populations, which keeps the competition less intense for NWC, allowing them to earn decent returns on capital over time. NWC’s same-store-sales growth has been stable and resilient over the years. We think the investing thesis of NWC as a disciplined capital allocator and consistent dividend grower remains intact. We are maintaining our rating at “B.”