The Return Trends At Velan (TSE:VLN) Look Promising
Dec 07
Canadian (TSX) Machinery Industry Analysis
UpdatedDec 07, 2022
DataAggregated Company Financials
Companies31
- 7D-1.7%
- 3M-1.9%
- 1Y-37.6%
- YTD-35.0%
Over the last 7 days, the Machinery industry has dropped 1.7%, driven by ATS declining 3.3%. Meanwhile, Lion Electric actually outperformed within the industry, gaining 6.5% in the last week. However, the industry is down 38% over the past year. As for the next few years, earnings are expected to grow by 70% per annum.
Industry Valuation and Performance
Has the Canadian Machinery Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 08 Dec 2022 | CA$8.7b | CA$9.3b | -CA$250,076,593.00 | 23.3x | -34.9x | 0.9x |
| Sat, 05 Nov 2022 | CA$8.8b | CA$9.0b | -CA$10,965,666.00 | 15.1x | -806.5x | 1x |
| Mon, 03 Oct 2022 | CA$8.0b | CA$9.1b | -CA$527,280.00 | 15.1x | -15265x | 0.9x |
| Wed, 31 Aug 2022 | CA$9.1b | CA$8.9b | -CA$2,233,303.00 | 16.9x | -4080.6x | 1x |
| Fri, 29 Jul 2022 | CA$8.7b | CA$8.8b | -CA$116,952,343.00 | 21.5x | -74.8x | 1x |
| Sun, 26 Jun 2022 | CA$8.4b | CA$8.8b | -CA$109,958,924.00 | 20x | -76.3x | 1x |
| Tue, 24 May 2022 | CA$8.8b | CA$8.8b | -CA$102,300,797.00 | 19x | -85.7x | 1x |
| Thu, 21 Apr 2022 | CA$10.9b | CA$8.5b | -CA$57,224,150.00 | 34.5x | -190.9x | 1.3x |
| Sat, 19 Mar 2022 | CA$11.7b | CA$8.4b | -CA$38,410,261.00 | 37.2x | -304.9x | 1.4x |
| Mon, 14 Feb 2022 | CA$12.5b | CA$8.3b | -CA$129,717,903.00 | 42.1x | -96.1x | 1.5x |
| Wed, 12 Jan 2022 | CA$13.1b | CA$8.0b | -CA$111,403,729.00 | 41.3x | -117.8x | 1.6x |
| Fri, 10 Dec 2021 | CA$13.9b | CA$8.1b | -CA$111,341,731.00 | 42.3x | -125.2x | 1.7x |
| Sun, 07 Nov 2021 | CA$14.4b | CA$7.8b | -CA$309,059,076.00 | 38.8x | -46.6x | 1.8x |
| Tue, 05 Oct 2021 | CA$12.8b | CA$7.9b | -CA$353,278,594.00 | 37.1x | -36.1x | 1.6x |
| Thu, 02 Sep 2021 | CA$14.9b | CA$7.8b | -CA$367,019,566.82 | 35.5x | -40.7x | 1.9x |
| Sat, 31 Jul 2021 | CA$14.8b | CA$7.8b | -CA$367,019,566.82 | 36.1x | -40.3x | 1.9x |
| Tue, 04 May 2021 | CA$11.0b | CA$7.1b | -CA$115,381,072.64 | 44x | -95.7x | 1.6x |
| Fri, 05 Feb 2021 | CA$10.6b | CA$7.3b | -CA$310,378,698.75 | 35.1x | -34.2x | 1.5x |
| Mon, 09 Nov 2020 | CA$5.9b | CA$7.7b | -CA$282,972,992.91 | 20.6x | -20.8x | 0.8x |
| Sun, 02 Aug 2020 | CA$5.3b | CA$7.9b | -CA$227,382,719.29 | 18x | -23.5x | 0.7x |
| Wed, 06 May 2020 | CA$5.3b | CA$8.7b | -CA$126,783,692.08 | 21.3x | -41.5x | 0.6x |
| Sat, 08 Feb 2020 | CA$7.0b | CA$8.1b | CA$100.9m | 29.3x | 69.5x | 0.9x |
Price to Earnings Ratio
67x
Current Industry PE
- Investors are pessimistic on the Canadian Machinery industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.94x.
Past Earnings Growth
- Total earnings for the Machinery industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have grown 4.8% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Canadian Industrials industry?
| CA Market | -1.52% | |
| Industrials | -0.16% | |
| Machinery | -1.68% | |
| Construction Machinery and Vehicles | 1.79% | |
| Industrial Machinery | -2.32% | |
| Agricultural Machinery | -4.82% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Agricultural Machinery industry, expecting annual earnings growth of 90% over the next 5 years.
- This is better than its past earnings decline of 93% per year.
- In contrast, the Industrial Machinery industry is expected to see its earnings grow by 55% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| LEV Lion Electric | CA$3.92 | 6.5% +CA$46.7m | -71.1% | PE11x | |
| SIS Savaria | CA$15.66 | 2.1% +CA$20.6m | -18.1% | PE40.3x | |
| VLN Velan | CA$5.74 | 10.4% +CA$11.7m | -32.2% | PS0.2x | |
| DYA dynaCERT | CA$0.20 | 5.4% +CA$3.8m | -17.0% | PS161.2x | |
| BUI Buhler Industries | CA$1.75 | 4.8% +CA$2.0m | -41.9% | PE16.9x |
