- GDI Integrated Facility Services Inc. Subordinate Voting Shares (GDI)
- TerraVest Industries Inc. (TVK)
TVK has done an excellent job of growing the business through acquisitions while paying consistent dividends and opportunistically buying back shares. TVK pays a decent yield of 1.5%, has grown its sales and earnings nicely over the past several years, it has manageable debt levels, and solid margins. It continues to trade at a decent valuation of 13.1X earnings and 0.9X sales. It has a good free cash flow yield, and its EBITDA has expanded nicely over the years, given the fluctuations in demand for oil and gas.
We continue to like GDI and while it has been drifting lower since 2021, its five-year price CAGR has remained strong at 16.5%. We feel that GDI will eventually see price appreciation as its multiples have compressed over the years. For an investor looking for higher growth and at a cheap valuation, we would be OK with a switch to TVK here, while being mindful of the volatility associated with the oil and gas industry.