SAVARIA CORP (SIS.CA) Stock Fundamental Analysis
TSX:SIS - Toronto Stock Exchange - CA8051121090 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to SIS. SIS was compared to 21 industry peers in the Machinery industry. SIS has an excellent profitability rating, but there are some minor concerns on its financial health. SIS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. SIS also has an excellent dividend rating. These ratings would make SIS suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
SIS had positive earnings in the past year.
SIS had a positive operating cash flow in the past year.
In the past 5 years SIS has always been profitable.
Each year in the past 5 years SIS had a positive operating cash flow.
1.2 Ratios
SIS has a better Return On Assets (4.08%) than 85.71% of its industry peers.
SIS's Return On Equity of 7.98% is amongst the best of the industry. SIS outperforms 85.71% of its industry peers.
The Return On Invested Capital of SIS (7.95%) is better than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 7.98% | ||
| ROIC | 7.95% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SIS has a Profit Margin of 5.34%. This is amongst the best in the industry. SIS outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of SIS has declined.
Looking at the Operating Margin, with a value of 11.79%, SIS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SIS's Operating Margin has declined in the last couple of years.
SIS has a better Gross Margin (36.20%) than 90.48% of its industry peers.
In the last couple of years the Gross Margin of SIS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.79% | ||
| PM (TTM) | 5.34% | ||
| GM | 36.2% |
OM growth 3Y-6.86%
OM growth 5Y-1.56%
PM growth 3Y-15.43%
PM growth 5Y-6.09%
GM growth 3Y-0.26%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
SIS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for SIS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.64 indicates that SIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
SIS has a better Altman-Z score (2.64) than 80.95% of its industry peers.
SIS has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as SIS would need 3.01 years to pay back of all of its debts.
SIS has a better Debt to FCF ratio (3.01) than 76.19% of its industry peers.
SIS has a Debt/Equity ratio of 0.52. This is a neutral value indicating SIS is somewhat dependend on debt financing.
SIS has a Debt to Equity ratio (0.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.81
WACC9.77%
2.3 Liquidity
SIS has a Current Ratio of 1.97. This is a normal value and indicates that SIS is financially healthy and should not expect problems in meeting its short term obligations.
SIS's Current ratio of 1.97 is fine compared to the rest of the industry. SIS outperforms 71.43% of its industry peers.
A Quick Ratio of 1.08 indicates that SIS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.08, SIS is doing good in the industry, outperforming 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.17% over the past year.
SIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.34% yearly.
SIS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.49%.
The Revenue has been growing by 23.96% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)10.17%
EPS 3Y3.11%
EPS 5Y7.34%
EPS Q2Q%0%
Revenue 1Y (TTM)3.49%
Revenue growth 3Y33.16%
Revenue growth 5Y23.96%
Sales Q2Q%1.68%
3.2 Future
Based on estimates for the next years, SIS will show a very strong growth in Earnings Per Share. The EPS will grow by 36.65% on average per year.
The Revenue is expected to grow by 6.25% on average over the next years.
EPS Next Y54.16%
EPS Next 2Y46.12%
EPS Next 3Y36.65%
EPS Next 5YN/A
Revenue Next Year3.89%
Revenue Next 2Y6.16%
Revenue Next 3Y6.25%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.62, the valuation of SIS can be described as expensive.
SIS's Price/Earnings is on the same level as the industry average.
SIS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
SIS is valuated correctly with a Price/Forward Earnings ratio of 14.75.
Based on the Price/Forward Earnings ratio, SIS is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
SIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.62 | ||
| Fwd PE | 14.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SIS indicates a rather cheap valuation: SIS is cheaper than 80.95% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SIS is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.39 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
SIS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SIS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SIS's earnings are expected to grow with 36.65% in the coming years.
PEG (NY)0.51
PEG (5Y)3.76
EPS Next 2Y46.12%
EPS Next 3Y36.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.00%, SIS has a reasonable but not impressive dividend return.
In the last 3 months the price of SIS has falen by -20.99%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.71, SIS pays a better dividend. On top of this SIS pays more dividend than 95.24% of the companies listed in the same industry.
SIS's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
The dividend of SIS is nicely growing with an annual growth rate of 11.44%!
SIS has been paying a dividend for at least 10 years, so it has a reliable track record.
SIS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.44%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
80.20% of the earnings are spent on dividend by SIS. This is not a sustainable payout ratio.
The dividend of SIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.2%
EPS Next 2Y46.12%
EPS Next 3Y36.65%
TSX:SIS (2/21/2025, 7:00:00 PM)
17.95
-0.05 (-0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners30.29%
Inst Owner ChangeN/A
Ins Owners1.4%
Ins Owner ChangeN/A
Market Cap1.28B
Analysts78.18
Price Target26.45 (47.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend0.51
Dividend Growth(5Y)11.44%
DP80.2%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.18%
Min EPS beat(2)-23.84%
Max EPS beat(2)-22.51%
EPS beat(4)0
Avg EPS beat(4)-17.58%
Min EPS beat(4)-23.84%
Max EPS beat(4)-11.99%
EPS beat(8)1
Avg EPS beat(8)-15.36%
EPS beat(12)1
Avg EPS beat(12)-24.9%
EPS beat(16)1
Avg EPS beat(16)-23.96%
Revenue beat(2)1
Avg Revenue beat(2)-1.13%
Min Revenue beat(2)-4.63%
Max Revenue beat(2)2.36%
Revenue beat(4)1
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-4.63%
Max Revenue beat(4)2.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.52%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)-2.68%
PT rev (3m)0.55%
EPS NQ rev (1m)-4.73%
EPS NQ rev (3m)11.9%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-3.33%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.62 | ||
| Fwd PE | 14.75 | ||
| P/S | 1.49 | ||
| P/FCF | 12.39 | ||
| P/OCF | 10.42 | ||
| P/B | 2.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.09 |
EPS(TTM)0.65
EY3.62%
EPS(NY)1.22
Fwd EY6.78%
FCF(TTM)1.45
FCFY8.07%
OCF(TTM)1.72
OCFY9.6%
SpS12.06
BVpS8.07
TBVpS-0.82
PEG (NY)0.51
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 7.98% | ||
| ROCE | 10.63% | ||
| ROIC | 7.95% | ||
| ROICexc | 8.46% | ||
| ROICexgc | 28.94% | ||
| OM | 11.79% | ||
| PM (TTM) | 5.34% | ||
| GM | 36.2% | ||
| FCFM | 12.01% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-6.86%
OM growth 5Y-1.56%
PM growth 3Y-15.43%
PM growth 5Y-6.09%
GM growth 3Y-0.26%
GM growth 5Y0.91%
F-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 38.57% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 6.19 | ||
| Cash Conversion | 80.83% | ||
| Profit Quality | 224.96% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.64 |
F-Score8
WACC9.77%
ROIC/WACC0.81
Cap/Depr(3y)37.34%
Cap/Depr(5y)43.12%
Cap/Sales(3y)2.41%
Cap/Sales(5y)2.35%
Profit Quality(3y)231.65%
Profit Quality(5y)187.05%
High Growth Momentum
Growth
EPS 1Y (TTM)10.17%
EPS 3Y3.11%
EPS 5Y7.34%
EPS Q2Q%0%
EPS Next Y54.16%
EPS Next 2Y46.12%
EPS Next 3Y36.65%
EPS Next 5YN/A
Revenue 1Y (TTM)3.49%
Revenue growth 3Y33.16%
Revenue growth 5Y23.96%
Sales Q2Q%1.68%
Revenue Next Year3.89%
Revenue Next 2Y6.16%
Revenue Next 3Y6.25%
Revenue Next 5YN/A
EBIT growth 1Y31.89%
EBIT growth 3Y24.02%
EBIT growth 5Y22.02%
EBIT Next Year117.38%
EBIT Next 3Y40.01%
EBIT Next 5YN/A
FCF growth 1Y177.54%
FCF growth 3Y12.18%
FCF growth 5Y34.93%
OCF growth 1Y127.29%
OCF growth 3Y16.82%
OCF growth 5Y26.04%