Stock market report of Québec inc. | Winners and losers of 2023

The year 2023 was better than the year 2022 for investors generally. Our annual overview of the big winners and big losers of the year from Québec inc. on the Toronto Stock Exchange (excluding companies that have received purchase offers).

The winners

ADF Group

For the second consecutive year, the ADF Group (Au Dragon Forgé) finds itself in the select club of Quebec titles that have stood out the most. After an appreciation of 30% in 2022, the action of the Terrebonne company specializing in the manufacture of steel superstructures continued to progress to record an increase of more than 230% in 2023. The stock nevertheless still passes under the radar of many investors despite the fact that a first analyst began to officially follow the company’s activities during the fall.

AtkinsRealis

Since September, it should no longer be called SNC-Lavalin, but rather AtkinsRéalis (even if the name change will not be official until after the shareholders’ meeting next spring). Regardless, the title of the Montreal engineering firm appreciated by nearly 80% during the year. Heavy exposure to government customers (a good thing if private sector spending is expected to decline), resurgent interest in nuclear globally, and potential monetization of non-core assets are all elements favorable to the title.

Colabor Group

The stock of the food distributor from the South Shore of Montreal rose 60% in 2023, but most of the rise was observed during the second half of the year. As the company enters the second phase of its five-year strategic plan, it is in a period of transition. Management made the decision to move its head office and warehouse from Boucherville to Saint-Bruno-de-Montarville. The new site is expected to be better suited to distribution operations. Management considers this project to be highly strategic for Colabor.

Stella-Jones

The increase of approximately 60% in the shares of the Montreal manufacturer of telephone poles and railway ties in 2023 can be explained in particular by the continued growth of its infrastructure-related activities. Sales of poles intended for public service companies (electricity networks) continue to benefit from favorable price dynamics. In the current context where the recession scenario cannot be completely ruled out, Stella-Jones’ action seems a refuge to consider for an investor looking for shelter.

Waterfalls

The stock of the paper company from Kingsey Falls, in Center-du-Québec, rose by approximately 50% in 2023. Analysts, however, remain cautious for the future at Cascades. The prevailing economic uncertainty calls for wisdom, particularly when it comes to the company’s packaging operations. Only one analyst out of the five who officially follow the stock is proposing to buy the action of the cardboard and tissue paper producer. The most optimistic will view this situation favorably and say that there is a greater chance that recommendations will be added than the reverse in the months to come.

Losers

Taiga

The Montreal manufacturer of 100% electric recreational vehicles has just gone through a particularly difficult year on the stock market. The economic context of high interest rates and recession risks is not helping the company’s sales. Taiga’s stock has lost more than 60% in 2023. Investors have recently had to revise their expectations downwards. Management indicated in November that a lack of parts availability is affecting production of some of its watercraft models, significantly lowering production forecasts.

Theratechnologies

The last 12 months have been eventful and trying for the shareholders of the Montreal biopharmaceutical company. During the year there were successive waves of layoffs, a consolidation of shares in order to maintain the listing on the NASDAQ, a downward revision of revenue forecasts and an issue of securities announced on the autumn. Ultimately, Theratechnologies stock ended 2023 down nearly 60%.

PyroGenesis

Shares of the plasma industrial process technology company ended the year down 60%. The year 2023 started on a false note after the company itself revealed in February that its big boss was the subject of an investigation by the Financial Markets Authority (AMF). To the company’s knowledge, the AMF investigation does not involve allegations of wrongdoing on the part of PyroGenèse.

Goodfood Market

The Montreal provider of ready-to-cook meals is now worth just over $15 million on the stock market. The company’s stock fell about 50% in 2023 and closed the year at around twenty cents on the Toronto Stock Exchange. Is it necessary to remember that the stock was worth around fifteen dollars at the height of the pandemic in 2021? The Montreal company’s action has thus dropped around 90% of its value in 2022 after having lost 66% in 2021. Activities have been refocused, the cost structure has been reduced, but sales are under pressure, and the number of active customers has already been much higher.

Innergex

The Quebec renewable energy producer lost 45% of its stock market value in 2023. So much so that the dividend yield is now close to the 8% mark. Some observers, such as analysts at National Bank Financial, believe that the dividend should be reduced. The money saved could be used to invest in the growth and development of new projects or to buy back shares.