TSX:CERV

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Cervus Equipment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CERV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

CERV

-3.2%

CA Trade Distributors

-1.6%

CA Market


1 Year Return

-2.4%

CERV

15.0%

CA Trade Distributors

-6.3%

CA Market

Return vs Industry: CERV underperformed the Canadian Trade Distributors industry which returned 16% over the past year.

Return vs Market: CERV exceeded the Canadian Market which returned -5.5% over the past year.


Shareholder returns

CERVIndustryMarket
7 Day-1.2%-3.2%-1.6%
30 Day-6.3%6.3%-0.8%
90 Day14.0%13.8%-0.7%
1 Year1.3%-2.4%18.8%15.0%-2.9%-6.3%
3 Year-39.6%-45.4%7.9%-1.7%3.4%-6.6%
5 Year-35.4%-44.8%73.9%48.8%31.6%11.4%

Price Volatility Vs. Market

How volatile is Cervus Equipment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

7.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CERV (CA$8.25) is trading below our estimate of fair value (CA$8.95)

Significantly Below Fair Value: CERV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CERV is unprofitable, so we can't compare its PE Ratio to the CA Trade Distributors industry average.

PE vs Market: CERV is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CERV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CERV is good value based on its PB Ratio (0.6x) compared to the CA Trade Distributors industry average (1.1x).


Next Steps

Future Growth

How is Cervus Equipment forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

97.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CERV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CERV is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CERV's is expected to become profitable in the next 3 years.

Revenue vs Market: CERV's revenue (3.9% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: CERV's revenue (3.9% 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


Next Steps

Past Performance

How has Cervus Equipment performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CERV is currently unprofitable.

Growing Profit Margin: CERV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CERV is unprofitable, but has reduced losses over the past 5 years at a rate of 20.3% per year.

Accelerating Growth: Unable to compare CERV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CERV is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (9.8%).


Return on Equity

High ROE: CERV has a negative Return on Equity (-0.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cervus Equipment's financial position?


Financial Position Analysis

Short Term Liabilities: CERV's short term assets (CA$413.6M) exceed its short term liabilities (CA$283.3M).

Long Term Liabilities: CERV's short term assets (CA$413.6M) exceed its long term liabilities (CA$107.7M).


Debt to Equity History and Analysis

Debt Level: CERV's debt to equity ratio (96.2%) is considered high.

Reducing Debt: CERV's debt to equity ratio has reduced from 195.3% to 96.2% over the past 5 years.

Debt Coverage: CERV's debt is well covered by operating cash flow (46.8%).

Interest Coverage: CERV is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

4.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CERV's dividend (4.18%) is higher than the bottom 25% of dividend payers in the Canadian market (1.7%).

High Dividend: CERV's dividend (4.18%) is low compared to the top 25% of dividend payers in the Canadian market (5.93%).


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: CERV is paying a dividend but the company is unprofitable.


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?

4.5yrs

Average management tenure


CEO

Angela Lekatsas (58 yo)

1.42yrs

Tenure

CA$347,224

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 a President and Chief Executive Officer at Cervus Equipment Co ...


CEO Compensation Analysis

Compensation vs Market: Angela's total compensation ($USD263.98K) is above average for companies of similar size in the Canadian market ($USD170.92K).

Compensation vs Earnings: Angela's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Angela Lekatsas
President1.42yrsCA$347.22k0.15%
CA$ 188.1k
Adam Lowther
Chief Financial Officer2.75yrsCA$308.05k0.12%
CA$ 154.3k
Fred Hnatiw
Vice President of Operations6.25yrsCA$329.77k0%
CA$ 0
Stella Cosby
Vice President of People6.25yrsCA$262.46k0%
CA$ 0
Calvin Johnson
Vice President of Operations - Agriculture Canada8.5yrsCA$873.41k1.13%
CA$ 1.4m
Scott Johnston
Vice President of Agriculture Canadano dataCA$210.51k0.0079%
CA$ 10.0k
Devin Mylrea
Corporate Counsel & Corporate Secretary2.5yrsno data0.011%
CA$ 13.6k
Mark Bradley
Managing Directorno dataCA$238.68kno data
Mike McCrae
Director of Information Servicesno datano datano data
Steven Feland
Director of Human Resourcesno datano datano data

4.5yrs

Average Tenure

58yo

Average Age

Experienced Management: CERV's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Angela Lekatsas
President1.42yrsCA$347.22k0.15%
CA$ 188.1k
Peter Lacey
Independent Chairman of the Board8.5yrsCA$208.18k18.1%
CA$ 23.0m
Steven Collicutt
Independent Director17.75yrsCA$80.20k0.25%
CA$ 312.5k
Daniel Sobic
Independent Director3.08yrsCA$68.90k0.067%
CA$ 85.0k
Larry Benke
Independent Director8.5yrsCA$78.35k0.046%
CA$ 57.7k
Donald Bell
Independent Lead Directorno dataCA$86.04k0.53%
CA$ 670.6k
Wendy Henkelman
Independent Director1.08yrsCA$21.53kno data

8.1yrs

Average Tenure

64yo

Average Age

Experienced Board: CERV's board of directors are considered experienced (8.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CERV 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 company bio, 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$126.803m
  • Shares outstanding: 15.37m
  • Website: https://www.cervusequipment.com

Number of Employees


Location

  • Cervus Equipment Corporation
  • Harvest Hills Business Park
  • 5201 – 333 96 Avenue NE
  • Calgary
  • Alberta
  • T3K 0S3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CERVTSX (The Toronto Stock Exchange)YesCommon StockCACADMay 2003
VCEDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2003
CSQP.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMay 2003

Biography

Cervus Equipment Corporation provides equipment solutions to customers in agriculture, transportation, and industrial markets in Canada, Australia, and New Zealand. It operates through three segments: Agri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 00:24
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.