Logo image of SIS.CA

SAVARIA CORP (SIS.CA) Stock Fundamental Analysis

TSX:SIS - Toronto Stock Exchange - CA8051121090 - Common Stock - Currency: CAD

17.89  -0.16 (-0.89%)

Fundamental Rating

6

Taking everything into account, SIS scores 6 out of 10 in our fundamental rating. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SIS. Finally SIS also has an excellent dividend rating. This makes SIS very considerable for value and dividend investing!


Dividend Valuation Growth Profitability Health

7

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.
In the past 5 years SIS always reported a positive cash flow from operatings.
SIS.CA Yearly Net Income VS EBIT VS OCF VS FCFSIS.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

1.2 Ratios

SIS's Return On Assets of 4.08% is amongst the best of the industry. SIS outperforms 85.71% of its industry peers.
SIS has a Return On Equity of 7.98%. This is amongst the best in the industry. SIS outperforms 85.71% of its industry peers.
SIS has a Return On Invested Capital of 7.95%. This is in the better half of the industry: SIS outperforms 61.90% of its industry peers.
Industry RankSector 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
SIS.CA Yearly ROA, ROE, ROICSIS.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

The Profit Margin of SIS (5.34%) is better than 85.71% of its industry peers.
SIS's Profit Margin has declined in the last couple of years.
SIS's Operating Margin of 11.79% 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 declined.
Looking at the Gross Margin, with a value of 36.20%, SIS belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
SIS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SIS.CA Yearly Profit, Operating, Gross MarginsSIS.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SIS is destroying value.
SIS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
SIS.CA Yearly Shares OutstandingSIS.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M
SIS.CA Yearly Total Debt VS Total AssetsSIS.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

2.2 Solvency

SIS has an Altman-Z score of 2.64. 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.
Looking at the Altman-Z score, with a value of 2.64, SIS belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
The Debt to FCF ratio of SIS is 3.01, which is a good value as it means it would take SIS, 3.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.01, SIS is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
SIS has a Debt/Equity ratio of 0.52. This is a neutral value indicating SIS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, SIS perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 3.01
Altman-Z 2.64
ROIC/WACC0.81
WACC9.8%
SIS.CA Yearly LT Debt VS Equity VS FCFSIS.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 1.97 indicates that SIS should not have too much problems paying its short term obligations.
SIS has a better Current ratio (1.97) than 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.
SIS's Quick ratio of 1.08 is fine compared to the rest of the industry. SIS outperforms 76.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.97
Quick Ratio 1.08
SIS.CA Yearly Current Assets VS Current LiabilitesSIS.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 10.17% over the past year.
Measured over the past 5 years, SIS shows a small growth in Earnings Per Share. The EPS has been growing by 7.34% on average per year.
SIS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.49%.
Measured over the past years, SIS shows a very strong growth in Revenue. The Revenue has been growing by 23.96% on average per year.
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

SIS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.65% yearly.
SIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.25% yearly.
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.
SIS.CA Yearly Revenue VS EstimatesSIS.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
SIS.CA Yearly EPS VS EstimatesSIS.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.52, which means the current valuation is very expensive for SIS.
The rest of the industry has a similar Price/Earnings ratio as SIS.
SIS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 30.43, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.70 indicates a correct valuation of SIS.
Based on the Price/Forward Earnings ratio, SIS is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SIS to the average of the S&P500 Index (23.78), we can say SIS is valued slightly cheaper.
Industry RankSector Rank
PE 27.52
Fwd PE 14.7
SIS.CA Price Earnings VS Forward Price EarningsSIS.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

76.19% of the companies in the same industry are more expensive than SIS, based on the Enterprise Value to EBITDA ratio.
80.95% of the companies in the same industry are more expensive than SIS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.35
EV/EBITDA 10.09
SIS.CA Per share dataSIS.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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.
SIS's earnings are expected to grow with 36.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)3.75
EPS Next 2Y46.12%
EPS Next 3Y36.65%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.99%, SIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 20.84, 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 2.30.
Industry RankSector Rank
Dividend Yield 2.99%

5.2 History

The dividend of SIS is nicely growing with an annual growth rate of 11.44%!
SIS has paid a dividend for at least 10 years, which is a reliable track record.
As SIS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.44%
Div Incr Years9
Div Non Decr Years9
SIS.CA Yearly Dividends per shareSIS.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

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%
SIS.CA Yearly Income VS Free CF VS DividendSIS.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
SIS.CA Dividend Payout.SIS.CA Dividend Payout, showing the Payout Ratio.SIS.CA Dividend Payout.PayoutRetained Earnings

SAVARIA CORP

TSX:SIS (2/18/2025, 7:00:00 PM)

17.89

-0.16 (-0.89%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)03-05 2025-03-05/amc
Inst Owners28.23%
Inst Owner ChangeN/A
Ins Owners1.37%
Ins Owner ChangeN/A
Market Cap1.28B
Analysts78.18
Price Target26.45 (47.85%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.99%
Yearly Dividend0.51
Dividend Growth(5Y)11.44%
DP80.2%
Div Incr Years9
Div Non Decr Years9
Ex-Date01-31 2025-01-31 (0.045)
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 RankSector Rank
PE 27.52
Fwd PE 14.7
P/S 1.48
P/FCF 12.35
P/OCF 10.39
P/B 2.22
P/tB N/A
EV/EBITDA 10.09
EPS(TTM)0.65
EY3.63%
EPS(NY)1.22
Fwd EY6.8%
FCF(TTM)1.45
FCFY8.1%
OCF(TTM)1.72
OCFY9.63%
SpS12.06
BVpS8.07
TBVpS-0.82
PEG (NY)0.51
PEG (5Y)3.75
Profitability
Industry RankSector 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 RankSector 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
WACC9.8%
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%