SAVARIA CORP (SIS.CA) Stock Fundamental Analysis
TSX:SIS - Toronto Stock Exchange - CA8051121090 - Common Stock - Currency: CAD
Taking everything into account, SIS scores 6 out of 10 in our fundamental rating. SIS was compared to 20 industry peers in the Machinery industry. SIS scores excellent on profitability, but there are some minor concerns on its financial health. SIS is not valued too expensively and it also shows a decent growth rate.
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.
SIS had positive earnings in each of the past 5 years.
Each year in the past 5 years SIS had a positive operating cash flow.
1.2 Ratios
SIS's Return On Assets of 4.35% is amongst the best of the industry. SIS outperforms 95.00% of its industry peers.
SIS has a better Return On Equity (8.43%) than 95.00% of its industry peers.
SIS's Return On Invested Capital of 8.48% is fine compared to the rest of the industry. SIS outperforms 80.00% of its industry peers.
SIS had an Average Return On Invested Capital over the past 3 years of 6.79%. This is in line with the industry average of 8.59%.
The 3 year average ROIC (6.79%) for SIS is below the current ROIC(8.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 8.43% | ||
| ROIC | 8.48% |
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
The Profit Margin of SIS (5.59%) is better than 95.00% of its industry peers.
In the last couple of years the Profit Margin of SIS has declined.
SIS's Operating Margin of 12.25% is amongst the best of the industry. SIS outperforms 100.00% 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 37.07%, SIS belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
SIS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.25% | ||
| PM (TTM) | 5.59% | ||
| GM | 37.07% |
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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SIS remains at a similar level compared to 1 year ago.
The number of shares outstanding for SIS has been increased compared to 5 years ago.
SIS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.79 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 (2.79) than 75.00% of its industry peers.
SIS has a debt to FCF ratio of 2.93. This is a good value and a sign of high solvency as SIS would need 2.93 years to pay back of all of its debts.
SIS has a Debt to FCF ratio of 2.93. This is amongst the best in the industry. SIS outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that SIS is not too dependend on debt financing.
SIS has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.93 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.99
WACC8.53%
2.3 Liquidity
SIS has a Current Ratio of 1.81. This is a normal value and indicates that SIS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SIS (1.81) is better than 70.00% of its industry peers.
SIS has a Quick Ratio of 1.81. This is a bad value and indicates that SIS is not financially healthy enough and could expect problems in meeting its short term obligations.
SIS's Quick ratio of 1.00 is in line compared to the rest of the industry. SIS outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.11% over the past year.
The Earnings Per Share has been growing by 9.69% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.68% in the past year.
Measured over the past years, SIS shows a quite strong growth in Revenue. The Revenue has been growing by 18.31% on average per year.
EPS 1Y (TTM)42.11%
EPS 3Y29.85%
EPS 5Y9.69%
EPS Q2Q%62.5%
Revenue 1Y (TTM)3.68%
Revenue growth 3Y9.5%
Revenue growth 5Y18.31%
Sales Q2Q%3%
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.
Based on estimates for the next years, SIS will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 23.69.
Based on the Price/Earnings ratio, SIS is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.82, SIS is valued at the same level.
With a Price/Forward Earnings ratio of 18.87, SIS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SIS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
SIS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 18.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIS is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
90.00% 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 | 13.71 | ||
| EV/EBITDA | 10.31 |
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.
A more expensive valuation may be justified as SIS's earnings are expected to grow with 21.91% in the coming years.
PEG (NY)0.93
PEG (5Y)2.44
EPS Next 2Y21.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, SIS has a reasonable but not impressive dividend return.
SIS's Dividend Yield is rather good when compared to the industry average which is at 25.10. SIS pays more dividend than 95.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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 in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.49%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
76.92% of the earnings are spent on dividend by SIS. This is not a sustainable payout ratio.
SIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP76.92%
EPS Next 2Y21.91%
EPS Next 3YN/A
TSX:SIS (5/23/2025, 7:00:00 PM)
19.19
-0.08 (-0.42%)
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 Cap1.37B
Analysts80
Price Target24.19 (26.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend0.53
Dividend Growth(5Y)3.49%
DP76.92%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.26%
Min EPS beat(2)1.55%
Max EPS beat(2)2.97%
EPS beat(4)2
Avg EPS beat(4)-7.83%
Min EPS beat(4)-23.84%
Max EPS beat(4)2.97%
EPS beat(8)3
Avg EPS beat(8)-10.48%
EPS beat(12)3
Avg EPS beat(12)-15.21%
EPS beat(16)3
Avg EPS beat(16)-21.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-4.63%
Max Revenue beat(2)-1%
Revenue beat(4)1
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-4.63%
Max Revenue beat(4)2.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.28%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)7
Avg Revenue beat(16)-0.03%
PT rev (1m)0%
PT rev (3m)-8.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)-2.31%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 18.87 | ||
| P/S | 1.58 | ||
| P/FCF | 13.71 | ||
| P/OCF | 11.41 | ||
| P/B | 2.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.31 |
EPS(TTM)0.81
EY4.22%
EPS(NY)1.02
Fwd EY5.3%
FCF(TTM)1.4
FCFY7.29%
OCF(TTM)1.68
OCFY8.77%
SpS12.15
BVpS8.06
TBVpS-0.79
PEG (NY)0.93
PEG (5Y)2.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 8.43% | ||
| ROCE | 11.37% | ||
| ROIC | 8.48% | ||
| ROICexc | 8.81% | ||
| ROICexgc | 29.6% | ||
| OM | 12.25% | ||
| PM (TTM) | 5.59% | ||
| GM | 37.07% | ||
| FCFM | 11.52% |
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 | 0.49 | ||
| Debt/FCF | 2.93 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 38.62% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 6.87 | ||
| Cash Conversion | 75.79% | ||
| Profit Quality | 206.04% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.79 |
F-Score7
WACC8.53%
ROIC/WACC0.99
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)42.11%
EPS 3Y29.85%
EPS 5Y9.69%
EPS Q2Q%62.5%
EPS Next Y25.52%
EPS Next 2Y21.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.68%
Revenue growth 3Y9.5%
Revenue growth 5Y18.31%
Sales Q2Q%3%
Revenue Next Year5.98%
Revenue Next 2Y5.75%
Revenue Next 3Y6%
Revenue Next 5YN/A
EBIT growth 1Y34.52%
EBIT growth 3Y29.27%
EBIT growth 5Y22.46%
EBIT Next Year72.56%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y67.26%
FCF growth 3Y33.97%
FCF growth 5Y37.01%
OCF growth 1Y52.77%
OCF growth 3Y27.99%
OCF growth 5Y31.7%