Skip to main content

The Globe and Mail

Mortgage lender Equitable Group has curb appeal

Toronto-based niche mortgage lender Equitable Group Inc. has a $600-million market cap, and in addition to the mortgage business it has deposit services and is a provider of Guaranteed Investment Certificates.

Chris Sadowski/iStockphoto

Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Validea.ca. Try it.

Toronto-based niche mortgage lender Equitable Group Inc. (founded in 1970), serves single family, small and large commercial borrowers, and their mortgage advisors. The company has a $600-million market cap, and in addition to the mortgage business it has deposit services and is a provider of Guaranteed Investment Certificates.

It was recently upgraded in Validea's Warren Buffett-based model, which likes that it has upped EPS every year over the last decade, has a 16.9 per cent return on equity in the same time period, and has a 13.5 per cent earnings yield.

Story continues below advertisement

Also recently upgraded in the Martin Zweig-based model, which likes that it has strong long-term earnings growth (15.8 per cent) and sales growth (24.6 per cent). Its earnings growth in the most recent quarter (18.7 per cent) is also greater than the long-term rate.

Lastly, it gets strong interest from the James O'Shaughnessy-inspired growth model, thanks in part to combination of high 12-month relative strength (88) and low price/sales ratio (1.2).

Click here for a detailed breakdown of Validea's investing guru report.

Report an error Editorial code of conduct
As of December 20, 2017, we have temporarily removed commenting from our articles as we switch to a new provider. We are behind schedule, but we are still working hard to bring you a new commenting system as soon as possible. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.