SAVARIA CORP (SIS.CA) Stock Fundamental Analysis
TSX:SIS - Toronto Stock Exchange - CA8051121090 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to SIS. SIS was compared to 21 industry peers in the Machinery industry. While SIS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SIS may be a bit undervalued, certainly considering the very reasonable score on growth This makes SIS very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SIS was profitable.
In the past year SIS had a positive cash flow from operations.
Each year in the past 5 years SIS has been profitable.
In the past 5 years SIS always reported a positive cash flow from operatings.
1.2 Ratios
SIS has a better Return On Assets (4.44%) than 95.45% of its industry peers.
SIS has a better Return On Equity (8.44%) than 95.45% of its industry peers.
With a decent Return On Invested Capital value of 8.78%, SIS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SIS is above the industry average of 3.67%.
The last Return On Invested Capital (8.78%) for SIS is above the 3 year average (6.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 8.44% | ||
| ROIC | 8.78% |
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
Looking at the Profit Margin, with a value of 5.68%, SIS belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
SIS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.65%, SIS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SIS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.51%, SIS belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
SIS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.65% | ||
| PM (TTM) | 5.68% | ||
| GM | 37.51% |
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
SIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SIS has about the same amount of shares outstanding.
Compared to 5 years ago, SIS has more shares outstanding
Compared to 1 year ago, SIS has an improved debt to assets ratio.
2.2 Solvency
SIS has an Altman-Z score of 2.80. This is not the best score and indicates that SIS is in the grey zone with still only limited risk for bankruptcy at the moment.
SIS has a Altman-Z score of 2.80. This is in the better half of the industry: SIS outperforms 77.27% of its industry peers.
The Debt to FCF ratio of SIS is 2.73, which is a good value as it means it would take SIS, 2.73 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.73, SIS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that SIS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, SIS is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.01
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.80 indicates that SIS should not have too much problems paying its short term obligations.
SIS has a Current ratio of 1.80. This is in the better half of the industry: SIS outperforms 68.18% of its industry peers.
SIS has a Quick Ratio of 1.80. This is a bad value and indicates that SIS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.99, SIS is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
SIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.50%, which is quite impressive.
Measured over the past years, SIS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.69% on average per year.
The Revenue has been growing slightly by 5.24% in the past year.
SIS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.31% yearly.
EPS 1Y (TTM)37.5%
EPS 3Y29.85%
EPS 5Y9.69%
EPS Q2Q%43.75%
Revenue 1Y (TTM)5.24%
Revenue growth 3Y9.5%
Revenue growth 5Y18.31%
Sales Q2Q%5.15%
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 21.91% on average per year.
SIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y25.52%
EPS Next 2Y21.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.98%
Revenue Next 2Y5.75%
Revenue Next 3Y6%
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.
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
The Price/Earnings ratio is 21.50, which indicates a rather expensive current valuation of SIS.
SIS's Price/Earnings ratio is rather cheap when compared to the industry. SIS is cheaper than 95.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.32. SIS is around the same levels.
Based on the Price/Forward Earnings ratio of 15.72, the valuation of SIS can be described as correct.
Based on the Price/Forward Earnings ratio, SIS is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
SIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIS is valued cheaper than 81.82% of the companies in the same industry.
90.91% 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 | 13.02 | ||
| EV/EBITDA | 9.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of SIS may justify a higher PE ratio.
A more expensive valuation may be justified as SIS's earnings are expected to grow with 21.91% in the coming years.
PEG (NY)0.84
PEG (5Y)2.22
EPS Next 2Y21.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SIS has a Yearly Dividend Yield of 2.83%.
Compared to an average industry Dividend Yield of 5.62, SIS pays a better dividend. On top of this SIS pays more dividend than 95.45% of the companies listed in the same industry.
SIS's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of SIS has a limited annual growth rate of 3.49%.
SIS has paid a dividend for at least 10 years, which is a reliable track record.
SIS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.49%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
SIS pays out 75.57% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.57%
EPS Next 2Y21.91%
EPS Next 3YN/A
TSX:SIS (6/13/2025, 7:00:00 PM)
18.92
-0.19 (-0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners31.36%
Inst Owner ChangeN/A
Ins Owners1.49%
Ins Owner ChangeN/A
Market Cap1.35B
Analysts80
Price Target24.63 (30.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend0.53
Dividend Growth(5Y)3.49%
DP75.57%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.24%
Min EPS beat(2)2.97%
Max EPS beat(2)3.51%
EPS beat(4)3
Avg EPS beat(4)-3.95%
Min EPS beat(4)-23.84%
Max EPS beat(4)3.51%
EPS beat(8)4
Avg EPS beat(8)-4.58%
EPS beat(12)4
Avg EPS beat(12)-10.99%
EPS beat(16)4
Avg EPS beat(16)-20.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-4.63%
Max Revenue beat(4)2.36%
Revenue beat(8)1
Avg Revenue beat(8)-1.97%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)6
Avg Revenue beat(16)-0.4%
PT rev (1m)1.81%
PT rev (3m)-6.89%
EPS NQ rev (1m)9.91%
EPS NQ rev (3m)-27.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.46%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)-3.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 15.72 | ||
| P/S | 1.54 | ||
| P/FCF | 13.02 | ||
| P/OCF | 10.82 | ||
| P/B | 2.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.71 |
EPS(TTM)0.88
EY4.65%
EPS(NY)1.2
Fwd EY6.36%
FCF(TTM)1.45
FCFY7.68%
OCF(TTM)1.75
OCFY9.24%
SpS12.3
BVpS8.29
TBVpS-0.7
PEG (NY)0.84
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 8.44% | ||
| ROCE | 11.78% | ||
| ROIC | 8.78% | ||
| ROICexc | 9.16% | ||
| ROICexgc | 31.64% | ||
| OM | 12.65% | ||
| PM (TTM) | 5.68% | ||
| GM | 37.51% | ||
| FCFM | 11.81% |
ROA(3y)3.66%
ROA(5y)3.57%
ROE(3y)7.71%
ROE(5y)7.05%
ROIC(3y)6.79%
ROIC(5y)6.45%
ROICexc(3y)6.88%
ROICexc(5y)6.83%
ROICexgc(3y)22.58%
ROICexgc(5y)21.26%
ROCE(3y)9.11%
ROCE(5y)8.66%
ROICexcg growth 3Y15.71%
ROICexcg growth 5Y5.03%
ROICexc growth 3Y26.66%
ROICexc growth 5Y-0.46%
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%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.73 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 39.63% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 7.97 | ||
| Cash Conversion | 75.98% | ||
| Profit Quality | 207.76% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.8 |
F-Score7
WACC8.66%
ROIC/WACC1.01
Cap/Depr(3y)39.6%
Cap/Depr(5y)38.18%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.3%
Profit Quality(3y)179.84%
Profit Quality(5y)212.14%
High Growth Momentum
Growth
EPS 1Y (TTM)37.5%
EPS 3Y29.85%
EPS 5Y9.69%
EPS Q2Q%43.75%
EPS Next Y25.52%
EPS Next 2Y21.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.24%
Revenue growth 3Y9.5%
Revenue growth 5Y18.31%
Sales Q2Q%5.15%
Revenue Next Year5.98%
Revenue Next 2Y5.75%
Revenue Next 3Y6%
Revenue Next 5YN/A
EBIT growth 1Y35.3%
EBIT growth 3Y29.27%
EBIT growth 5Y22.46%
EBIT Next Year78.95%
EBIT Next 3Y28.87%
EBIT Next 5YN/A
FCF growth 1Y62.13%
FCF growth 3Y33.97%
FCF growth 5Y37.01%
OCF growth 1Y46.03%
OCF growth 3Y27.99%
OCF growth 5Y31.7%