Canada's Antitrust Watchdog Calls For Easing of Foreign-Ownership Limits in Airline Sector

OTTAWA-Canada's antitrust watchdog recommends the government ease restrictions on foreign investment in the country's airline sector to stimulate competition – such as allowing nonresidents to own 100% of a domestic-focused carrier.
The Competition Bureau issued its findings after a nearly yearlong study about Canada's airline market on ways to stoke fiercer rivalries among operators.

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33 minutes ago

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Intact Financial Corporation's (TSE:IFC) Recent Stock Performance Looks Decent- Can Strong Fundamentals Be the Reason?

Intact Financial's (TSE:IFC) stock up by 7.6% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Particularly, we will be paying attention to Intact Financial's ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Intact Financial is: 12% = CA$2.3b ÷ CA$19b (Based on the trailing twelve months to March 2025). The 'return' is the amount earned after tax over the last twelve months. That means that for every CA$1 worth of shareholders' equity, the company generated CA$0.12 in profit. Check out our latest analysis for Intact Financial So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. To begin with, Intact Financial seems to have a respectable ROE. Even when compared to the industry average of 12% the company's ROE looks quite decent. This probably goes some way in explaining Intact Financial's moderate 12% growth over the past five years amongst other factors. We then compared Intact Financial's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 9.4% in the same 5-year period. Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for IFC? You can find out in our latest intrinsic value infographic research report. Intact Financial has a healthy combination of a moderate three-year median payout ratio of 40% (or a retention ratio of 60%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits. Besides, Intact Financial has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 32% over the next three years. As a result, the expected drop in Intact Financial's payout ratio explains the anticipated rise in the company's future ROE to 16%, over the same period. On the whole, we feel that Intact Financial's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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38 minutes ago

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1 Magnificent Growth Stock to Own for the Next Decade

Written by Adam Othman at The Motley Fool Canada If you are new to it and are just starting to invest in the stock market, you might be wondering about investing in companies that make headlines about making people a ton of money. Most of the time, these growth stocks belong to the tech sector. However, the tech stock meltdown a few years ago has made the space a little too risky for many investors to consider. That said, there are still opportunities to invest and get great returns. The key is to invest in high-quality growth stocks by studying the fundamentals and identifying the long-term winners. While there are plenty of undervalued tech stocks up for grabs for this purpose, I will discuss a stock in an entirely different segment of the economy: retail. Aritzia (TSX:ATZ), if you have been following the stock, is an interesting prospect to consider for growth-seeking investors. Aritzia is a $7.72 billion market-cap integrated design house of exclusive fashion brands. The company designs apparel and accessories for its extensive collection. Retail sales in the U.S. and Canada account for most of its revenue, while it generates significant cash flows from e-commerce sales. The company has built a solid presence in the online space and has around 130 boutiques across North America. Its customer base in the U.S. has been growing over the years, and that is the kind of lucrative market that can make it a solid long-term winner. The company's recent financials paint a clearer picture of where the stock might be heading. For the quarter ending in February 2025, Aritzia's revenue jumped by a massive 31% from the same quarter in the previous year. The company's e-commerce sales picked up pace, growing by 42% in the same period. The company also doubled its adjusted earnings per share, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved to 18% from 10.6% in the previous year. As of this writing, Aritzia stock trades for $67.44 per share. It is up by a massive 87.72% from its 52-week low levels. The company's investments in expanding its retail operations, digital marketing efforts, and improvements in the supply chain are paying off. The upward trend in its share prices reflects the success of its strategy. The company looks well-positioned to stay relevant and keep growing in the years ahead. This means that, barring short-term headwinds due to macroeconomic factors, ATZ stock looks like a strong long-term winner to consider adding to your self-directed investment portfolio. Instead of chasing all the noise in the market, it is better to focus on businesses that look likely to expand, evolve, and become long-term winners. The real key to success as a stock market investor is having a long investment horizon. To this end, Aritzia stock might be a good choice for your self-directed investment portfolio. If you buy and hold shares of Aritzia stock in a Tax-Free Savings Account (TFSA), you can set yourself up for significant and tax-free wealth growth over the years. The post 1 Magnificent Growth Stock to Own for the Next Decade appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio

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38 minutes ago

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Investing in Winpak (TSE:WPK) five years ago would have delivered you a 30% gain

If you buy and hold a stock for many years, you'd hope to be making a profit. Better yet, you'd like to see the share price move up more than the market average. Unfortunately for shareholders, while the Winpak Ltd. (TSE:WPK) share price is up 12% in the last five years, that's less than the market return. Meanwhile, the last twelve months saw the share price rise 2.8%. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, Winpak managed to grow its earnings per share at 7.5% a year. This EPS growth is higher than the 2% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock. You can see below how EPS has changed over time (discover the exact values by clicking on the image). Dive deeper into Winpak's key metrics by checking this interactive graph of Winpak's earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Winpak the TSR over the last 5 years was 30%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. Winpak shareholders gained a total return of 10% during the year. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 5% per year over five year. This suggests the company might be improving over time. If you would like to research Winpak in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company. Of course Winpak may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.