Circa Enterprises Inc. (CTO:TSX-V) - March 25th 2015
Circa Enterprises Inc. designs, engineers, manufactures, and sells equipment to various industries ranging from telecom to electrical and construction. The company’s operations are comprised of two distinct business segments, namely, telecom and metal fabrication.
Based on 2014 net earnings of $0.14 per share, Circa is presently trading at a price / earnings multiple of 6.9. As at December 31, 2014, Circa had no long-term debt and a substantial positive working capital position of about $8.0 million or $0.82 per share including cash of $0.16 per share. Accordingly, the company is trading at a price to trailing earnings multiple of just 1.1 times net of working capital. Furthermore, in December 2014, for the second time in the past three years, Circa Enterprises issued a special dividend to shareholders of $0.05 per share, which represents a yield of approximately 5%.