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CERV

Cervus EquipmentTSX:CERV Stock Report

Market Cap

CA$301.6m

7D

0.2%

1Y

127.0%

Updated

16 Oct, 2021

Data

Company Financials +
CERV fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends2/6

CERV Overview

Cervus Equipment Corporation, an equipment dealer, provides equipment solutions to customers in agriculture, transportation, and industrial markets in Canada, Australia, and New Zealand.

Cervus Equipment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cervus Equipment
Historical stock prices
Current Share PriceCA$19.50
52 Week HighCA$7.27
52 Week LowCA$19.50
Beta1.76
1 Month Change0.62%
3 Month Change35.98%
1 Year Change127.01%
3 Year Change57.13%
5 Year Change50.70%
Change since IPO4,775.00%

Recent News & Updates

Jul 20
At CA$13.65, Is It Time To Put Cervus Equipment Corporation (TSE:CERV) On Your Watch List?

At CA$13.65, Is It Time To Put Cervus Equipment Corporation (TSE:CERV) On Your Watch List?

Cervus Equipment Corporation ( TSE:CERV ), is not the largest company out there, but it saw significant share price...

Jun 03
Is Cervus Equipment Corporation (TSE:CERV) Trading At A 21% Discount?

Is Cervus Equipment Corporation (TSE:CERV) Trading At A 21% Discount?

In this article we are going to estimate the intrinsic value of Cervus Equipment Corporation ( TSE:CERV ) by taking the...

Shareholder Returns

CERVCA Trade DistributorsCA Market
7D0.2%3.3%2.4%
1Y127.0%38.2%31.3%

Return vs Industry: CERV exceeded the Canadian Trade Distributors industry which returned 38.2% over the past year.

Return vs Market: CERV exceeded the Canadian Market which returned 31.3% over the past year.

Price Volatility

Is CERV's price volatile compared to industry and market?
CERV volatility
CERV Beta1.76
Industry Beta1.17
Market Beta1

Stable Share Price: CERV is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CERV's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19821,500Angela Lekatsashttps://www.cervusequipment.com

Cervus Equipment Corporation, an equipment dealer, provides equipment solutions to customers in agriculture, transportation, and industrial markets in Canada, Australia, and New Zealand. It operates through three segments: Agricultural, Transportation, and Industrial. The company provides riding mower, gator utility vehicles, zero-turn mowers, tractors, commercial mowers, as well as cutters and shredders and front-end loaders.

Cervus Equipment Fundamentals Summary

How do Cervus Equipment's earnings and revenue compare to its market cap?
CERV fundamental statistics
Market CapCA$301.62m
Earnings (TTM)CA$34.15m
Revenue (TTM)CA$1.29b

8.8x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CERV income statement (TTM)
RevenueCA$1.29b
Cost of RevenueCA$1.07b
Gross ProfitCA$217.61m
ExpensesCA$183.46m
EarningsCA$34.15m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.21
Gross Margin16.92%
Net Profit Margin2.65%
Debt/Equity Ratio53.1%

How did CERV perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is Cervus Equipment undervalued compared to its fair value and its price relative to the market?

8.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CERV (CA$19.5) is trading above our estimate of fair value (CA$15)

Significantly Below Fair Value: CERV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CERV is good value based on its PE Ratio (8.8x) compared to the Canadian Trade Distributors industry average (10.2x).

PE vs Market: CERV is good value based on its PE Ratio (8.8x) compared to the Canadian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: CERV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CERV's PB Ratio (1.2x) is in line with the CA Trade Distributors industry average.


Future Growth

How is Cervus Equipment forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CERV's earnings are forecast to decline over the next 3 years (-17.6% per year).

Earnings vs Market: CERV's earnings are forecast to decline over the next 3 years (-17.6% per year).

High Growth Earnings: CERV's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CERV's revenue (4.8% per year) is forecast to grow slower than the Canadian market (6.7% per year).

High Growth Revenue: CERV's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CERV's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Cervus Equipment performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CERV has high quality earnings.

Growing Profit Margin: CERV became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CERV's earnings have declined by 6% per year over the past 5 years.

Accelerating Growth: CERV has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CERV has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (107.1%).


Return on Equity

High ROE: CERV's Return on Equity (13.2%) is considered low.


Financial Health

How is Cervus Equipment's financial position?


Financial Position Analysis

Short Term Liabilities: CERV's short term assets (CA$397.9M) exceed its short term liabilities (CA$256.5M).

Long Term Liabilities: CERV's short term assets (CA$397.9M) exceed its long term liabilities (CA$82.4M).


Debt to Equity History and Analysis

Debt Level: CERV's debt to equity ratio (53.1%) is considered high.

Reducing Debt: CERV's debt to equity ratio has reduced from 146.2% to 53.1% over the past 5 years.

Debt Coverage: CERV's debt is well covered by operating cash flow (47.5%).

Interest Coverage: CERV's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Dividend

What is Cervus Equipment current dividend yield, its reliability and sustainability?

2.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CERV's dividend (2.26%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: CERV's dividend (2.26%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).


Stability and Growth of Payments

Stable Dividend: CERV's dividend payments have been volatile in the past 10 years.

Growing Dividend: CERV's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.3%), CERV's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Angela Lekatsas (59 yo)

2.42yrs

Tenure

CA$845,622

Compensation

Ms. Angela S. Lekatsas, B. Comm., CA, CPA (Illinois) has been a Vice President and Treasurer of Agrium Inc. since 2011. Ms. Lekatsas serves as the President and Chief Executive Officer at Cervus Equipment...


CEO Compensation Analysis

Compensation vs Market: Angela's total compensation ($USD683.57K) is above average for companies of similar size in the Canadian market ($USD481.85K).

Compensation vs Earnings: Angela's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CERV's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: CERV's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cervus Equipment Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Cervus Equipment Corporation
  • Ticker: CERV
  • Exchange: TSX
  • Founded: 1982
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: CA$301.620m
  • Shares outstanding: 15.47m
  • Website: https://www.cervusequipment.com

Number of Employees


Location

  • Cervus Equipment Corporation
  • Harvest Hills Business Park
  • 6302, 333 - 96 Avenue NE
  • Calgary
  • Alberta
  • T3K 0S3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 22:08
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.