SAVARIA CORP (SIS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SIS - CA8051121090 - Common Stock
24.77 CAD
-0.45 (-1.78%)
SIS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 23 industry peers in the Machinery industry. SIS gets an excellent profitability rating and is at the same time showing great financial health properties. SIS is valued quite cheap, while showing a decent growth score. This is a good combination! Finally SIS also has an excellent dividend rating. These ratings would make SIS suitable for value and dividend and quality 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.
- SIS had positive earnings in each of the past 5 years.
- SIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SIS has a better Return On Assets (5.44%) than 95.45% of its industry peers.
- With an excellent Return On Equity value of 9.77%, SIS belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 9.38%, SIS belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SIS is in line with the industry average of 6.48%.
- The last Return On Invested Capital (9.38%) for SIS is above the 3 year average (6.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 9.77% | ||
| ROIC | 9.38% |
ROA(3y)3.66%
ROA(5y)3.57%
ROE(3y)7.71%
ROE(5y)7.05%
ROIC(3y)6.79%
ROIC(5y)6.45%
1.3 Margins
- With an excellent Profit Margin value of 6.90%, SIS belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- SIS's Profit Margin has declined in the last couple of years.
- The Operating Margin of SIS (13.48%) is better than 95.45% of its industry peers.
- In the last couple of years the Operating Margin of SIS has grown nicely.
- Looking at the Gross Margin, with a value of 38.44%, SIS belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- In the last couple of years the Gross Margin of SIS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.48% | ||
| PM (TTM) | 6.9% | ||
| GM | 38.44% |
OM growth 3Y18.06%
OM growth 5Y3.5%
PM growth 3Y47.56%
PM growth 5Y-4.03%
GM growth 3Y4.38%
GM growth 5Y2.06%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SIS is creating some value.
- SIS has about the same amout of shares outstanding than it did 1 year ago.
- SIS has more shares outstanding than it did 5 years ago.
- SIS has a better debt/assets ratio than last year.
2.2 Solvency
- SIS has an Altman-Z score of 3.44. This indicates that SIS is financially healthy and has little risk of bankruptcy at the moment.
- SIS has a Altman-Z score of 3.44. This is amongst the best in the industry. SIS outperforms 90.91% of its industry peers.
- SIS has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as SIS would need 2.21 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 2.21, SIS belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- A Debt/Equity ratio of 0.39 indicates that SIS is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.39, SIS perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.07
WACC8.77%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that SIS should not have too much problems paying its short term obligations.
- SIS has a Current ratio of 1.84. This is in the better half of the industry: SIS outperforms 72.73% of its industry peers.
- SIS has a Quick Ratio of 1.84. This is a bad value and indicates that SIS is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of SIS (0.98) is worse than 63.64% of its industry peers.
- SIS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- SIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.80%, which is quite impressive.
- SIS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.28% yearly.
- The Revenue has been growing slightly by 3.93% in the past year.
- The Revenue has been growing by 18.31% on average over the past years. This is quite good.
EPS 1Y (TTM)35.8%
EPS 3Y34.98%
EPS 5Y12.28%
EPS Q2Q%33.33%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y9.5%
Revenue growth 5Y18.31%
Sales Q2Q%5.21%
3.2 Future
- SIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.69% yearly.
- SIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.82% yearly.
EPS Next Y29.86%
EPS Next 2Y22.03%
EPS Next 3Y20.34%
EPS Next 5Y17.69%
Revenue Next Year4.92%
Revenue Next 2Y5.49%
Revenue Next 3Y5.73%
Revenue Next 5Y5.82%
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
- SIS is valuated rather expensively with a Price/Earnings ratio of 22.52.
- 81.82% of the companies in the same industry are more expensive than SIS, based on the Price/Earnings ratio.
- SIS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 18.28, the valuation of SIS can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, SIS is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of SIS to the average of the S&P500 Index (25.98), we can say SIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
- SIS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SIS is cheaper than 86.36% of the companies in the same industry.
- 86.36% of the companies in the same industry are more expensive than SIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.24 | ||
| EV/EBITDA | 11.31 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
- SIS's earnings are expected to grow with 20.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)1.83
EPS Next 2Y22.03%
EPS Next 3Y20.34%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.22%, SIS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.91, SIS pays a better dividend. On top of this SIS pays more dividend than 90.91% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, SIS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
- The dividend of SIS has a limited annual growth rate of 3.49%.
- SIS has been paying a dividend for at least 10 years, so it has a reliable track record.
- SIS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.49%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- SIS pays out 62.47% of its income as dividend. This is not a sustainable payout ratio.
- SIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.47%
EPS Next 2Y22.03%
EPS Next 3Y20.34%
SAVARIA CORP / SIS.CA FAQ
What is the ChartMill fundamental rating of SAVARIA CORP (SIS.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to SIS.CA.
What is the valuation status of SAVARIA CORP (SIS.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to SAVARIA CORP (SIS.CA). This can be considered as Undervalued.
What is the profitability of SIS stock?
SAVARIA CORP (SIS.CA) has a profitability rating of 8 / 10.
What is the earnings growth outlook for SAVARIA CORP?
The Earnings per Share (EPS) of SAVARIA CORP (SIS.CA) is expected to grow by 29.86% in the next year.
How sustainable is the dividend of SAVARIA CORP (SIS.CA) stock?
The dividend rating of SAVARIA CORP (SIS.CA) is 7 / 10 and the dividend payout ratio is 62.47%.