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WAJAX CORP (WJX.CA) Stock Fundamental Analysis

TSX:WJX - Toronto Stock Exchange - CA9307831052 - Common Stock - Currency: CAD

20.39  -0.35 (-1.69%)

Fundamental Rating

4

Overall WJX gets a fundamental rating of 4 out of 10. We evaluated WJX against 13 industry peers in the Trading Companies & Distributors industry. While WJX is still in line with the averages on profitability rating, there are concerns on its financial health. WJX is valued correctly, but it does not seem to be growing. WJX also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

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.
WJX had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: WJX reported negative operating cash flow in multiple years.
WJX.CA Yearly Net Income VS EBIT VS OCF VS FCFWJX.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 0 50M -50M 100M 150M

1.2 Ratios

WJX has a Return On Assets of 4.45%. This is comparable to the rest of the industry: WJX outperforms 46.15% of its industry peers.
With an excellent Return On Equity value of 13.51%, WJX belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
WJX has a Return On Invested Capital of 10.18%. This is amongst the best in the industry. WJX outperforms 84.62% of its industry peers.
Industry RankSector 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
WJX.CA Yearly ROA, ROE, ROICWJX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

1.3 Margins

The Profit Margin of WJX (3.32%) is better than 61.54% of its industry peers.
WJX's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.39%, WJX is doing good in the industry, outperforming 69.23% of the companies in the same industry.
WJX's Operating Margin has improved in the last couple of years.
The Gross Margin of WJX (21.55%) is comparable to the rest of the industry.
WJX's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
WJX.CA Yearly Profit, Operating, Gross MarginsWJX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WJX is destroying value.
There is no outstanding debt for WJX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
WJX.CA Yearly Shares OutstandingWJX.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 5M 10M 15M 20M
WJX.CA Yearly Total Debt VS Total AssetsWJX.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

WJX has an Altman-Z score of 2.55. 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.
WJX has a Altman-Z score of 2.55. This is in the lower half of the industry: WJX underperforms 69.23% of its industry peers.
WJX has a debt to FCF ratio of 100.03. This is a negative value and a sign of low solvency as WJX would need 100.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 100.03, WJX is doing worse than 61.54% of the companies in the same industry.
WJX has a Debt/Equity ratio of 0.85. This is a neutral value indicating WJX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, WJX is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF 100.03
Altman-Z 2.55
ROIC/WACC0.95
WACC10.75%
WJX.CA Yearly LT Debt VS Equity VS FCFWJX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

WJX has a Current Ratio of 1.91. This is a normal value and indicates that WJX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WJX (1.91) is worse than 61.54% of its industry peers.
A Quick Ratio of 0.64 indicates that WJX may have some problems paying its short term obligations.
WJX's Quick ratio of 0.64 is on the low side compared to the rest of the industry. WJX is outperformed by 84.62% of its industry peers.
Industry RankSector Rank
Current Ratio 1.91
Quick Ratio 0.64
WJX.CA Yearly Current Assets VS Current LiabilitesWJX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

2

3. Growth

3.1 Past

The earnings per share for WJX have decreased strongly by -24.07% in the last year.
Measured over the past years, WJX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.37% on average per year.
Looking at the last year, WJX shows a decrease in Revenue. The Revenue has decreased by -3.67% in the last year.
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

Based on estimates for the next years, WJX will show a decrease in Earnings Per Share. The EPS will decrease by -9.60% on average per year.
Based on estimates for the next years, WJX will show a small growth in Revenue. The Revenue will grow by 0.18% on average per year.
EPS Next Y-34.2%
EPS Next 2Y-14.87%
EPS Next 3Y-9.6%
EPS Next 5YN/A
Revenue Next Year-3.45%
Revenue Next 2Y-0.16%
Revenue Next 3Y0.18%
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.
WJX.CA Yearly Revenue VS EstimatesWJX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
WJX.CA Yearly EPS VS EstimatesWJX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.10, the valuation of WJX can be described as very cheap.
Based on the Price/Earnings ratio, WJX is valued cheaper than 100.00% of the companies in the same industry.
WJX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.12.
A Price/Forward Earnings ratio of 7.44 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.
When comparing the Price/Forward Earnings ratio of WJX to the average of the S&P500 Index (94.77), we can say WJX is valued rather cheaply.
Industry RankSector Rank
PE 7.1
Fwd PE 7.44
WJX.CA Price Earnings VS Forward Price EarningsWJX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, WJX is valued cheaper than 84.62% of the companies in the same industry.
61.54% of the companies in the same industry are cheaper than WJX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 83.55
EV/EBITDA 5.06
WJX.CA Per share dataWJX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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 -9.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-14.87%
EPS Next 3Y-9.6%

7

5. Dividend

5.1 Amount

WJX has a Yearly Dividend Yield of 6.46%, which is a nice return.
Compared to an average industry Dividend Yield of 3.86, WJX pays a better dividend. On top of this WJX pays more dividend than 92.31% of the companies listed in the same industry.
WJX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 6.46%

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
WJX.CA Yearly Dividends per shareWJX.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

41.38% of the earnings are spent on dividend by WJX. This is a bit on the high side, but may be sustainable.
DP41.38%
EPS Next 2Y-14.87%
EPS Next 3Y-9.6%
WJX.CA Yearly Income VS Free CF VS DividendWJX.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M 150M
WJX.CA Dividend Payout.WJX.CA Dividend Payout, showing the Payout Ratio.WJX.CA Dividend Payout.PayoutRetained Earnings

WAJAX CORP

TSX:WJX (2/7/2025, 7:00:00 PM)

20.39

-0.35 (-1.69%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)11-03 2024-11-03/amc
Earnings (Next)N/A N/A
Inst Owners24.27%
Inst Owner ChangeN/A
Ins Owners1.08%
Ins Owner ChangeN/A
Market Cap446.74M
Analysts75
Price Target24.48 (20.06%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.46%
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)-15.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.89%
Valuation
Industry RankSector Rank
PE 7.1
Fwd PE 7.44
P/S 0.21
P/FCF 83.55
P/OCF 29.78
P/B 0.86
P/tB 1.35
EV/EBITDA 5.06
EPS(TTM)2.87
EY14.08%
EPS(NY)2.74
Fwd EY13.44%
FCF(TTM)0.24
FCFY1.2%
OCF(TTM)0.68
OCFY3.36%
SpS95.98
BVpS23.61
TBVpS15.08
PEG (NY)N/A
PEG (5Y)0.57
Profitability
Industry RankSector 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 RankSector 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 2.55
F-Score5
WACC10.75%
ROIC/WACC0.95
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-34.2%
EPS Next 2Y-14.87%
EPS Next 3Y-9.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.67%
Revenue growth 3Y14.84%
Revenue growth 5Y7.78%
Sales Q2Q%-5.63%
Revenue Next Year-3.45%
Revenue Next 2Y-0.16%
Revenue Next 3Y0.18%
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