Husky Energy’s Tucker operation.
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Calgary-based Husky Energy Inc. is one of Canada's largest integrated energy companies, having raked in more than $24-billion in sales over past 12 months. It has a market cap of $29-billion.
Husky has 18.9-per-cent free cash flow yield. Narrowing crack spreads have negatively impacted earnings, but that's helped keep valuations reasonable. Shares trade for less than 14 times trailing 12-month EPS, 1.2 times TTM sales, and 1.47 times book value, all very reasonable.
Husky has a 4.1-per-cent dividend yield and $5.13 in cash flow per share (more than four times the market mean), two reasons it gets strong interest from the James O'Shaughnessy-based value model.
Husky could pay off its $3.2-billion in debt in less than two years given its $2.1-billion in annual earnings, which the Warren Buffett-based model considers exceptional.
Husky also has a solid 11-per-cent return on equity and has averaged net profit margins of nearly 8 per cent over past three years.
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