WAJAX CORP (WJX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:WJX - CA9307831052 - Common Stock
27.92 CAD
-0.19 (-0.68%)
Overall WJX gets a fundamental rating of 5 out of 10. We evaluated WJX against 12 industry peers in the Trading Companies & Distributors industry. WJX has an average financial health and profitability rating. WJX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- WJX had positive earnings in the past year.
- WJX had a positive operating cash flow in the past year.
- In the past 5 years WJX has always been profitable.
- WJX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- WJX has a Return On Assets (3.23%) which is in line with its industry peers.
- WJX has a Return On Equity of 8.71%. This is comparable to the rest of the industry: WJX outperforms 50.00% of its industry peers.
- The Return On Invested Capital of WJX (7.77%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 8.71% | ||
| ROIC | 7.77% |
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 worse Profit Margin (2.16%) than 66.67% of its industry peers.
- In the last couple of years the Profit Margin of WJX has declined.
- WJX's Operating Margin of 4.84% is in line compared to the rest of the industry. WJX outperforms 41.67% of its industry peers.
- WJX's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 18.94%, WJX perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- WJX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.84% | ||
| PM (TTM) | 2.16% | ||
| GM | 18.94% |
OM growth 3Y-1.65%
OM growth 5Y-0.87%
PM growth 3Y-14.37%
PM growth 5Y-4.31%
GM growth 3Y-0.52%
GM growth 5Y0.98%
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 more shares outstanding than it did 5 years ago.
2.2 Solvency
- WJX has an Altman-Z score of 2.91. 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 2.91, WJX perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- The Debt to FCF ratio of WJX is 2.67, which is a good value as it means it would take WJX, 2.67 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of WJX (2.67) is better than 75.00% of its industry peers.
- A Debt/Equity ratio of 0.82 indicates that WJX is somewhat dependend on debt financing.
- WJX has a Debt to Equity ratio of 0.82. This is in the lower half of the industry: WJX underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.83
WACC9.37%
2.3 Liquidity
- WJX has a Current Ratio of 2.22. This indicates that WJX is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of WJX (2.22) is comparable to the rest of the industry.
- WJX has a Quick Ratio of 2.22. 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 0.84, WJX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- WJX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.24%.
- Measured over the past 5 years, WJX shows a small growth in Earnings Per Share. The EPS has been growing by 3.09% on average per year.
- Looking at the last year, WJX shows a small growth in Revenue. The Revenue has grown by 3.71% in the last year.
- The Revenue has been growing slightly by 6.20% on average over the past years.
EPS 1Y (TTM)-13.24%
EPS 3Y0.42%
EPS 5Y3.09%
EPS Q2Q%69.77%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y8.61%
Revenue growth 5Y6.2%
Sales Q2Q%0.44%
3.2 Future
- WJX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.53% yearly.
- WJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.34% yearly.
EPS Next Y18.92%
EPS Next 2Y14.49%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue Next Year2.57%
Revenue Next 2Y1.2%
Revenue Next 3Y1.34%
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
- A Price/Earnings ratio of 11.21 indicates a reasonable valuation of WJX.
- 91.67% 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 (27.21), we can say WJX is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.84, the valuation of WJX can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, WJX is valued cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. WJX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 8.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WJX is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, WJX is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.4 | ||
| EV/EBITDA | 6.56 |
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.
PEG (NY)0.59
PEG (5Y)3.63
EPS Next 2Y14.49%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.98%, WJX is a good candidate for dividend investing.
- WJX's Dividend Yield is rather good when compared to the industry average which is at 5.97. WJX pays more dividend than 83.33% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, WJX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
5.2 History
- WJX has been paying a dividend for at least 10 years, so it has a reliable track record.
- WJX has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years8
5.3 Sustainability
- WJX pays out 65.74% of its income as dividend. This is not a sustainable payout ratio.
DP65.74%
EPS Next 2Y14.49%
EPS Next 3Y11.53%
WAJAX CORP / WJX.CA FAQ
What is the ChartMill fundamental rating of WAJAX CORP (WJX.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WJX.CA.
Can you provide the valuation status for WAJAX CORP?
ChartMill assigns a valuation rating of 8 / 10 to WAJAX CORP (WJX.CA). This can be considered as Undervalued.
How profitable is WAJAX CORP (WJX.CA) stock?
WAJAX CORP (WJX.CA) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for WJX stock?
The Earnings per Share (EPS) of WAJAX CORP (WJX.CA) is expected to grow by 18.92% in the next year.
Is the dividend of WAJAX CORP sustainable?
The dividend rating of WAJAX CORP (WJX.CA) is 6 / 10 and the dividend payout ratio is 65.74%.