Stock investing can make you a millionaire, provided your investment horizon is long term. If you scout the TSX, Premium Brand Holdings Corporation (TSX: PBH) and Trisura Group (TSX: TSU) have millionaire-maker potential. The former has a total return of 672.3% in ten years, while the latter gained 433.1% in only five years and four months.
Had you invested $6,490 (500 shares) in PBH on February 23, 2013, and $10,310.40 (1,432 shares) in TSU on October 23, 2017, your money would be worth $100,145.20 today. The example illustrates the capital gains Canadian domestic stocks can deliver over time. What’s more, a substantial investment can balloon to $1 million or more within the same timeframe.
Staying the course through adversity
Premium Brands has existed since 1917 and operates in the packaged foods industry. The $4.5 billion food company owns a broad range of specialty food manufacturing and differentiated food distribution businesses. It serves customers in Canada and the US.
The stock price 10 years ago was $12.98 compared to $100.25 today. Thus, making one million in a decade is possible if the price appreciation is 672.3%. Current investors enjoy a 21.8% year-to-date gain on top of the decent 2.79% dividend yield (cash dividend).
“Staying the course through adversity” is Premium Brands’ theme in the current environment. The full-year 2022 results will come out in mid-March 2023, although results after three quarters were impressive. In the nine months that ended September 24, 2022, revenue and earnings increased 22.5% and 36.4% year over year to $4.4 billion and $129.2 million.
In Q3 2022, management reported record revenue of $1.6 billion, or 21% higher than in Q3 2021. Its President and CEO, George Paleologou, said, “Despite the persistent but moderating headwinds of inflation, supply chain challenges and labour shortages, we are making steady progress towards our short and long-term goals.”
Mr. Paleologou is confident that Premium Brands’ diversified business model will generate superior long-term returns for its shareholders. Management will continue investing in product innovation, production capacity, process improvement, and their people.
Premium Brands expects to achieve its five-year 2023 sales and EBITDA targets of $6 billion and $600 million, respectively.
Future-focused
Trisura is a promising high-growth stock, as evidenced by its inclusion in the TSX30 List in 2020, 2021, and 2022. It ranked 16th, 3rd, and 10th in the flagship program for the top-performing Canadian stocks. From $7.20 in October 23, 2017, the TSU trades at $34.84 today. It’s a good entry because it trades at a discount (-23.07% year to date).
According to management, Trisura is future-focused. Its wholly-owned operating subsidiaries collaborate with strong distribution partners and focus on its existing distribution network and product segments. Moreover, strategic acquisitions and a multi-line, multi-jurisdictional platform assure future success.
Millionaire-makers
The Canadian stock market has millionaire-makers across various sectors. While Premium Brands and Trisura stand out, understand the threats to the business and inherent risks before investing.
