WAJAX CORP (WJX.CA) Stock Fundamental Analysis
TSX:WJX - Toronto Stock Exchange - CA9307831052 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to WJX. WJX was compared to 13 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of WJX while its profitability can be described as average. WJX has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally WJX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WJX was profitable.
In the past year WJX had a positive cash flow from operations.
In the past 5 years WJX has always been profitable.
In multiple years WJX reported negative operating cash flow during the last 5 years.
1.2 Ratios
WJX has a Return On Assets (4.45%) which is comparable to the rest of the industry.
WJX's Return On Equity of 13.51% is amongst the best of the industry. WJX outperforms 84.62% of its industry peers.
WJX's Return On Invested Capital of 10.18% is amongst the best of the industry. WJX outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 13.51% | ||
| ROIC | 10.18% |
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
WJX has a Profit Margin of 3.32%. This is in the better half of the industry: WJX outperforms 61.54% of its industry peers.
In the last couple of years the Profit Margin of WJX has grown nicely.
WJX's Operating Margin of 6.39% is fine compared to the rest of the industry. WJX outperforms 69.23% of its industry peers.
In the last couple of years the Operating Margin of WJX has grown nicely.
WJX has a Gross Margin (21.55%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WJX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.39% | ||
| PM (TTM) | 3.32% | ||
| GM | 21.55% |
OM growth 3Y8.15%
OM growth 5Y8.75%
PM growth 3Y19.04%
PM growth 5Y9.18%
GM growth 3Y4.33%
GM growth 5Y2.62%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WJX is destroying value.
WJX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
WJX has an Altman-Z score of 2.53. This is not the best score and indicates that WJX is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.53, WJX is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
The Debt to FCF ratio of WJX is 100.03, which is on the high side as it means it would take WJX, 100.03 years of fcf income to pay off all of its debts.
WJX's Debt to FCF ratio of 100.03 is on the low side compared to the rest of the industry. WJX is outperformed by 69.23% of its industry peers.
WJX has a Debt/Equity ratio of 0.85. This is a neutral value indicating WJX is somewhat dependend on debt financing.
WJX has a worse Debt to Equity ratio (0.85) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 100.03 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.96
WACC10.57%
2.3 Liquidity
A Current Ratio of 1.91 indicates that WJX should not have too much problems paying its short term obligations.
The Current ratio of WJX (1.91) is worse than 69.23% of its industry peers.
WJX has a Quick Ratio of 1.91. This is a bad value and indicates that WJX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.64, WJX is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
WJX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.07%.
WJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.37% yearly.
WJX shows a decrease in Revenue. In the last year, the revenue decreased by -3.67%.
Measured over the past years, WJX shows a small growth in Revenue. The Revenue has been growing by 7.78% on average per year.
EPS 1Y (TTM)-24.07%
EPS 3Y30.27%
EPS 5Y12.37%
EPS Q2Q%-55.21%
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y14.84%
Revenue growth 5Y7.78%
Sales Q2Q%-5.63%
3.2 Future
The Earnings Per Share is expected to decrease by -8.36% on average over the next years.
The Revenue is expected to grow by 0.49% on average over the next years.
EPS Next Y-34.07%
EPS Next 2Y-16.25%
EPS Next 3Y-8.36%
EPS Next 5YN/A
Revenue Next Year-3.35%
Revenue Next 2Y0.16%
Revenue Next 3Y0.49%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.56, the valuation of WJX can be described as very cheap.
100.00% of the companies in the same industry are more expensive than WJX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WJX to the average of the S&P500 Index (29.35), we can say WJX is valued rather cheaply.
A Price/Forward Earnings ratio of 7.11 indicates a rather cheap valuation of WJX.
WJX's Price/Forward Earnings ratio is rather cheap when compared to the industry. WJX is cheaper than 92.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, WJX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
WJX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WJX is cheaper than 84.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WJX is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.2 | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
The decent profitability rating of WJX may justify a higher PE ratio.
A cheap valuation may be justified as WJX's earnings are expected to decrease with -8.36% in the coming years.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-16.25%
EPS Next 3Y-8.36%
5. Dividend
5.1 Amount
WJX has a Yearly Dividend Yield of 7.68%, which is a nice return.
The stock price of WJX dropped by -20.77% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
WJX's Dividend Yield is rather good when compared to the industry average which is at 4.05. WJX pays more dividend than 92.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, WJX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.68% |
5.2 History
The dividend of WJX has a limited annual growth rate of 0.16%.
WJX has been paying a dividend for at least 10 years, so it has a reliable track record.
As WJX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.16%
Div Incr Years2
Div Non Decr Years8
5.3 Sustainability
WJX pays out 41.38% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.38%
EPS Next 2Y-16.25%
EPS Next 3Y-8.36%
TSX:WJX (3/7/2025, 7:00:00 PM)
18.84
+0.62 (+3.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners24.26%
Inst Owner ChangeN/A
Ins Owners1.06%
Ins Owner ChangeN/A
Market Cap412.78M
Analysts75
Price Target24.48 (29.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.68% |
Yearly Dividend1
Dividend Growth(5Y)0.16%
DP41.38%
Div Incr Years2
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.3%
Min EPS beat(2)-26.69%
Max EPS beat(2)-1.92%
EPS beat(4)1
Avg EPS beat(4)-7.92%
Min EPS beat(4)-26.69%
Max EPS beat(4)4.45%
EPS beat(8)5
Avg EPS beat(8)3.23%
EPS beat(12)8
Avg EPS beat(12)3.92%
EPS beat(16)11
Avg EPS beat(16)14.28%
Revenue beat(2)0
Avg Revenue beat(2)-8.36%
Min Revenue beat(2)-12.65%
Max Revenue beat(2)-4.07%
Revenue beat(4)0
Avg Revenue beat(4)-6.52%
Min Revenue beat(4)-12.65%
Max Revenue beat(4)-1.19%
Revenue beat(8)3
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)0.09%
Revenue beat(16)9
Avg Revenue beat(16)0.73%
PT rev (1m)0%
PT rev (3m)1.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 7.11 | ||
| P/S | 0.2 | ||
| P/FCF | 77.2 | ||
| P/OCF | 27.51 | ||
| P/B | 0.8 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)2.87
EY15.23%
EPS(NY)2.65
Fwd EY14.07%
FCF(TTM)0.24
FCFY1.3%
OCF(TTM)0.68
OCFY3.63%
SpS95.98
BVpS23.61
TBVpS15.08
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 13.51% | ||
| ROCE | 13.68% | ||
| ROIC | 10.18% | ||
| ROICexc | 10.21% | ||
| ROICexgc | 12.62% | ||
| OM | 6.39% | ||
| PM (TTM) | 3.32% | ||
| GM | 21.55% | ||
| FCFM | 0.25% |
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 3Y8.15%
OM growth 5Y8.75%
PM growth 3Y19.04%
PM growth 5Y9.18%
GM growth 3Y4.33%
GM growth 5Y2.62%
F-Score5
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 100.03 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 15.93% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | 6.16 | ||
| Cash Conversion | 7.7% | ||
| Profit Quality | 7.65% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.53 |
F-Score5
WACC10.57%
ROIC/WACC0.96
Cap/Depr(3y)16.01%
Cap/Depr(5y)17.97%
Cap/Sales(3y)0.47%
Cap/Sales(5y)0.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.07%
EPS 3Y30.27%
EPS 5Y12.37%
EPS Q2Q%-55.21%
EPS Next Y-34.07%
EPS Next 2Y-16.25%
EPS Next 3Y-8.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y14.84%
Revenue growth 5Y7.78%
Sales Q2Q%-5.63%
Revenue Next Year-3.35%
Revenue Next 2Y0.16%
Revenue Next 3Y0.49%
Revenue Next 5YN/A
EBIT growth 1Y5.52%
EBIT growth 3Y24.2%
EBIT growth 5Y17.21%
EBIT Next Year19.67%
EBIT Next 3Y7.66%
EBIT Next 5YN/A
FCF growth 1Y-95.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.42%
OCF growth 3YN/A
OCF growth 5YN/A