Cheap TFSA Stocks: 1 Safe Stock to Hold Forever

Apollo Healthcare Corp. (TSX:AHC) has garnered a strong track record for fostering product innovation through the company’s internal capabilities.

| More on:
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Apollo Healthcare (TSX:AHC) is one of the largest private label personal care product manufacturers in North America, developing and manufacturing retailer-branded and private label products for major North American retailers. Apollo’s products are sold in tens of thousands of stores across North America. The company’s customer base spans major North American grocery, drug, and mass merchandise retailers, as well as wholesale clubs.

The company was founded in 1993 with one manufacturing facility located in Toronto, Ontario, and began operations as a producer and seller of private label personal care products in Canada. Apollo has since expanded to the United States and Mexico private label market by supplying major retailers’ needs for private label personal care. Apollo currently operates a centralized design and manufacturing facility in Toronto that’s capable of manufacturing stock-keeping units in nearly any liquid product category.

Diverse products

Products that Apollo manufactures include over 16 product lines, each of which falls into five main product categories including body wash, soap, sanitizer and cleansers, hair care, and skincare. Similar to Unilever (NYSE:UL), Apollo’s products are backed by advanced formulations and constant evaluation of performance in order to ensure high quality and consumer value.

Apollo is well positioned within the personal care marketplace, enjoying several competitive advantages. The company is widely regarded by customers as having industry-leading research and development capabilities, having compiled a strong catalogue of independently tested private label products that directly compete with most major national brands or forge new and innovative formulations into successful products on the market. Consultation and ongoing collaboration with suppliers and industry experts provide insights and access to new, advanced formulations and technologies.

Advanced manufacturing facility

Apollo’s manufacturing competency is an integral component in consistently providing high-quality products at competitive prices. Apollo’s facility employs advanced technology and processes that allow Apollo to be energy efficient and cost-effective.

Apollo’s client list is composed of a mass merchant, food, drug, and specialty retailers in North America. Apollo offers comprehensive private label programs through active collaboration with retailers.

Strategic location

The strategic location of Apollo’s facility creates logistical efficiencies. Key input and raw material suppliers are located in close proximity to Apollo’s facility. A dedicated rail spur provides Apollo with increased freight flexibility on demand.

Economies of scale allow Apollo to enjoy relationships with major suppliers which has resulted in cost savings. Also, Apollo’s product development cycle can be completed significantly faster than the company’s national brand competitors. Rather than focusing solely on contract manufacturing, Apollo’s vertically integrated private label programs include product formulation, label and packaging design, proactive category insights, and demand forecasting. Apollo partners and collaborates with major retailers and to create tailored private label product offerings for consumers.

Strong track record

Further, Apollo has garnered a strong track record for fostering product innovation through the company’s internal capabilities. It has successfully developed thousands of formulations within the company’s product portfolio across multiple product categories and product types.

Apollo continually improves the company’s robust manufacturing practices and employs a team of dedicated quality assurance and quality control specialists. These improvements should serve long-term shareholders well.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.

More on Investing

Glass piggy bank
Investing

4 Dividend Stocks to Hold in Your RRSP Forever

Inflation and volatility should spur RRSP investors to buy dependable dividend stocks like Hydro One Ltd. (TSX:H) and others right…

Read more »

protect, safe, trust
Dividend Stocks

3 Safe Stocks for Beginners Amid Rising Volatility

Given their stable cash flows and healthy growth potential, these three safe stocks are excellent buys for beginners.

Read more »

edit Four girl friends withdrawing money from credit card at ATM
Bank Stocks

3 Cheap Bank Stocks to Buy Today

Canadians may want to snatch up top bank stocks like Bank of Montreal (TSX:BMO)(NYSE:BMO) that look undervalued today.

Read more »

calculate and analyze stock
Stocks for Beginners

Top TSX Stocks for Beginners in July 2022

Buying these top TSX stocks in July 2022 could help stock market beginners receive handsome returns on their investments in…

Read more »

thinking
Investing

Stocks, Bonds, or Real Estate: What’s the Best Way to Prepare for a Recession?

Recession worries could push investors to bonds.

Read more »

Oil pumps against sunset
Energy Stocks

How Would a Price Cap on Russian Oil Impact Canadian Energy Stocks?  

Canadian energy stocks surged in the last three days, as G7 countries proposed a plan to impose a price cap…

Read more »

Business success with growing, rising charts and businessman in background
Tech Stocks

3 Growth Stocks Worth Buying Today

With the volatility of the stock market, many investors continue to avoid growth stocks. However, here are three stocks worth…

Read more »

money cash dividends
Dividend Stocks

Market Correction: 2 Oversold TSX Dividend Stocks to Buy for Total Returns

These top value stocks pay attractive dividends and look cheap to buy for a TFSA or RRSP focused on total…

Read more »