Money Are hard economic times approaching? Here is one solid Canadian tech company to consider

22:27  12 july  2018
22:27  12 july  2018 Source:   fool.com

Bank of Canada expected to raise rate

  Bank of Canada expected to raise rate The Bank of Canada is widely expected to raise its trend-setting interest rate today for the first time in six months. Thanks to stronger economic data, experts are predicting governor Stephen Poloz to hike the rate from its current level of 1.25 per cent.Poloz has followed a cautious, data-dependent approach in recent months and he hasn't touched the rate since raising it in January, a move that came after two earlier increases in the second half of 2017.The central bank's rate decision arrives as Canada faces significant trade-related uncertainties, including stalled NAFTA talks, U.S.

69% of Canadian tech firms have only 1 -4 employees, yet the sector is responsible for generating 7. 1 % (7 billion) of Canada ’s total economic output. Since many tech companies in Canada are relatively new startups, there is potential for significant revenue growth within Canada ’s tech industry.

The following are some key things to consider when making any international marketing decision. Economic Factors. A. Per Capita Income. Of course a country’s wealth is a huge factor when determining Sign up. Employer? Unlock your free company profile here . Login or Register. E-mail*.

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With trade wars heating up, it is time for Canadians to begin looking for companies to buy if things begin to go south and stocks get cheaper. There are a number of wonderful companies in Canada that have solid balance sheets and that operate in high-growth industries. Some of these companies are really expensive at the moment, but if a pullback does happen, it’s worth being prepared to pull the trigger on a long-term investment.

Kinaxis Inc. (TSX:KXS) is one Canadian growth company that might be worth adding if the market pulls back. The company is involved in cloud-based supply chain operations and sales optimization. It provides services to customers in numerous industries, such as aerospace, life sciences, and automotive companies. And while 85% of its revenues are currently generated from North America, Kinaxis is expanding its operations internationally, especially in Asia.

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In fact, every year, recruiters from Apple, Google and Facebook, among others, flock to this Canadian tech hub to onboard new employees; graduates of the University of Waterloo are the “We can shortcut the challenges of building a SAAS company through the experience of the people here .”

The approach has made companies more nimble and more productive, and delivered huge “But they consider themselves a global company , not necessarily a Cupertino company .” “We would have a hard time getting an audience with anybody beyond upper-middle management,” she said.

The company focuses on providing management solutions for companies with complex, often international supply chains. It has numerous blue-chip clients, such as Honeywell International Inc., Advanced Micro Devices Inc., and Cisco Systems Inc. The subscription model Kinaxis employs produces significant recurring revenue, and the company also has an active sales force driving 65% of subscription growth from new business.

Kinaxis is not a cheap stock, but its solid operational performance warrants a closer look. Kinaxis has grown its revenues at a compound annual growth rate of 25%. Profit was up 41% for the year, and basic earnings per share were up 38%, indicating strong financial growth. Another attractive aspect of the company is its balance sheet. It has virtually no debt and more cash than the entirety of its liabilities.

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  Toronto hits record close, while U.S. markets also gain ground The base metals and industrial sectors helped Canada's main stock index close at a record high Monday, while U.S. stock markets also climbed higher as technology companies and banks rose. Stocks were up across North America following positive economic data from Canada and the U.S. last week, said Craig Fehr, a Canadian markets strategist with Edward Jones in St. Louis."I'd say the real catalyst here is a bit of a distraction from what's been weighing on markets recently, which has been a fear of a budding trade war, and that distraction is coming in the form of some strong and encouraging economic data.

The Canadian economic system generally combines elements of private enterprise and public Canadian companies are increasingly playing important roles in Latin America, Southeast Asia, and Africa. Pictured here is a CRJ-900 airplane of Scandinavian Airlines (Y-KFA) built in Canada .

The people it hired hail from Morocco, Belarus, France, Georgia and Canada . But they are not working in New York. They are in Montreal, where immigration policies make it possible to get work permits within two weeks, and the Canadian tech industry is aggressively trying to woo foreign companies .

Unfortunately, Kinaxis lacks a dividend, which may cause some investors who crave income from their stocks to avoid investing in the company. While I generally like owning dividend-paying stocks, the lack of a dividend alone is not a reason to dismiss a stock entirely. Companies that do not possess dividends can employ the capital to grow the business through organic or acquisitive initiatives. So far, Kinaxis has been an effective allocator of its cash.

Probably the biggest risk to the company is that Kinaxis has customers that account for large portions of its revenues. It has 42% of its total revenue coming from 10 companies, with one customer accounting for a full 10% of its business. The long-term nature of its subscriptions, with each agreement being paid annually in advance and with a duration of two to five years, provides a degree of stability and visibility to mitigate uncertainty should a large customer decide to no longer use its service.

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A more hands-off approach to companies ’ hiring decisions. The faster processing times are available only for companies that fit one of two requirements READ MORE: Here are the Canadian towns and cities that could lose the most jobs to robots. On the other hand, the Canadian tech industry

Tech . Science. But here are a few aspects of life in the country that might just make some Brits and Americans think twice about a move. In Canada , the average income of the top 10% of earners is 8.6 times higher than that of the bottom 10%, according to the Organisation for Economic Co-operation

If you are worried about economic uncertainty, Kinaxis would be a good stock to keep in mind as a stock to buy if it were to pull back with the market. With its high-growth software and cloud-based business, it could be more resistant to the negative impact of tariffs. While it does not have a dividend, the company’s solid balance sheet makes it both more attractive as an investment and more resilient if hard times begin to hit the Canadian or the world economy.

Canada’s answer to Amazon.com

You’ve probably never even heard of this up-and-coming e-commerce powerhouse headquartered in Eastern Ontario…

But, despite coming public just last year, it’s already helping the likes of Budweiser… Tesla… Subway… and Red Bull move $9.9 BILLION (and counting) worth of goods online each year.

And now it’s caught the eye of the legendary investor who got behind Amazon.com in 1997 — just before it shot up over 23,000% and made investors like you and me rich beyond their wildest dreams.

Click here to discover why this investor says it’s time to buy.

Fool contributor Kris Knutson owns shares of Cisco Systems. Kinaxis is a recommendation of Stock Advisor Canada.

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