Cervus Equipment Corporation engages in the sale, after-sale service, and maintenance of agricultural, transportation, and industrial equipment.
Moderate growth potential with mediocre balance sheet.
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.
7 Day Return
CA Trade Distributors
1 Year Return
CA Trade Distributors
Return vs Industry: CERV underperformed the Canadian Trade Distributors industry which returned -1.4% over the past year.
Return vs Market: CERV underperformed the Canadian Market which returned 5.8% over the past year.
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
11 hours ago | Simply Wall StShould You Take Comfort From Insider Transactions At Cervus Equipment Corporation (TSE:CERV)?
1 week ago | Simply Wall StBefore You Buy Cervus Equipment Corporation (TSE:CERV), Consider Its Volatility
3 weeks ago | Simply Wall StWhat Does Cervus Equipment Corporation's (TSE:CERV) Share Price Indicate?
Is Cervus Equipment undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CERV (CA$8.7) is trading above our estimate of fair value (CA$5.56)
Significantly Below Fair Value: CERV is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CERV is poor value based on its PE Ratio (25.5x) compared to the Trade Distributors industry average (14.9x).
PE vs Market: CERV is poor value based on its PE Ratio (25.5x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: CERV is good value based on its PEG Ratio (0.2x)
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).
How is Cervus Equipment forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CERV's forecast earnings growth (111.4% per year) is above the savings rate (1.4%).
Earnings vs Market: CERV's earnings (111.4% per year) are forecast to grow faster than the Canadian market (10.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CERV's revenue (1.3% per year) is forecast to grow slower than the Canadian market (4.9% per year).
High Growth Revenue: CERV's revenue (1.3% 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
How has Cervus Equipment performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CERV has a large one-off gain of CA$2.3M impacting its September 30 2019 financial results.
Growing Profit Margin: CERV's current net profit margins (0.4%) are lower than last year (1.8%).
Past Earnings Growth Analysis
Earnings Trend: CERV's earnings have grown significantly by 25.4% per year over the past 5 years.
Accelerating Growth: CERV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CERV had negative earnings growth (-77.6%) over the past year, making it difficult to compare to the Trade Distributors industry average (-2.7%).
Return on Equity
High ROE: CERV's Return on Equity (2.3%) is considered low.
Return on Assets
Return on Capital Employed
How is Cervus Equipment's financial position?
Financial Position Analysis
Short Term Liabilities: CERV's short term assets (CA$450.2M) exceed its short term liabilities (CA$309.7M).
Long Term Liabilities: CERV's short term assets (CA$450.2M) exceed its long term liabilities (CA$122.7M).
Debt to Equity History and Analysis
Debt Level: CERV's debt to equity ratio (109.4%) is considered high.
Reducing Debt: CERV's debt to equity ratio has reduced from 125.1% to 109.4% over the past 5 years.
Debt Coverage: CERV's debt is not well covered by operating cash flow (18.3%).
Interest Coverage: CERV's interest payments on its debt are not well covered by EBIT (1.6x coverage).
Inventory Level: CERV has a high level of physical assets or inventory.
Debt Coverage by Assets: CERV's debt is covered by short term assets (assets are 1.8x debt).
What is Cervus Equipment's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CERV's dividend (5.06%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).
High Dividend: CERV's dividend (5.06%) is low compared to the top 25% of dividend payers in the Canadian market (5.32%).
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 high payout ratio (126%), CERV's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CERV's dividends in 3 years are forecast to be covered by earnings (59.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Angela Lekatsas (57yo)
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 ...
|Chief Financial Officer||2.1yrs||CA$475.71k||0.017% CA$22.8k|
|Vice President of Operations||5.6yrs||CA$575.69k||0.069% CA$92.7k|
|Vice President of People||5.6yrs||CA$486.23k||0.028% CA$37.5k|
|Vice President of Operations - Agriculture Canada||7.8yrs||CA$564.81k||1.14% CA$1.5m|
|Corporate Counsel & Corporate Secretary||1.8yrs||no data||no data|
|Managing Director||0yrs||CA$238.68k||no data|
|Vice President of Agriculture Canada||0yrs||no data||0.0057% CA$7.6k|
Experienced Management: CERV's management team is considered experienced (3.8 years average tenure).
|Independent Chairman of the Board||7.8yrs||CA$177.20k||18.1% CA$24.2m|
|Independent Director||17.1yrs||CA$74.93k||0.25% CA$329.3k|
|Independent Director||2.4yrs||CA$68.00k||0.042% CA$55.6k|
|Independent Director||7.8yrs||CA$75.10k||0.046% CA$60.9k|
|Lead Director||0yrs||CA$82.57k||0.51% CA$680.3k|
|Independent Director||0.4yrs||no data||no data|
Experienced Board: CERV's board of directors are considered experienced (7.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cervus Equipment Corporation's company bio, employee growth, exchange listings and data sources
- Name: Cervus Equipment Corporation
- Ticker: CERV
- Exchange: TSX
- Founded: 2003
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: CA$133.471m
- Shares outstanding: 15.35m
- Website: https://www.cervusequipment.com
Number of Employees
- Cervus Equipment Corporation
- Harvest Hills Business Park
- 5201 – 333 96 Avenue NE
- T3K 0S3
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CERV||TSX (The Toronto Stock Exchange)||Yes||Common Stock||CA||CAD||May 2003|
|VCE||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2003|
|CSQP.F||OTCPK (Pink Sheets LLC)||Yes||Common Stock||US||USD||May 2003|
Cervus Equipment Corporation engages in the sale, after-sale service, and maintenance of agricultural, transportation, and industrial equipment. It operates through three segments: Agricultural, Transportation, and Industrial Equipment. The Agricultural segment offers tractors, combine harvesting equipment, tillage, seeding, nutrient management and soil preparation machinery, sprayers, hay and forage equipment, material handling, integrated agricultural systems technology, precision agricultural irrigation equipment and supplies, lawn and garden tractors, compact utility tractors, zero-turn radius and front mowers, and utility vehicles; and associated implements for mowing, tilling, snow and debris handling, aerating, and other turf applications. As of December 31, 2018, this segment consisted of interests in 36 John Deere dealership locations with 15 in Alberta, 5 in Saskatchewan, 1 in British Columbia, 9 in New Zealand, and 6 in Australia. The Transportation segment sells and services road conventional, vocational, and medium-duty pick-up and delivery trucks. This segment had 19 dealerships with 4 Peterbilt truck dealerships and 1 collision repair center operating in Saskatchewan, and 12 full service Peterbilt truck dealerships and 2 parts and service centers operating in Ontario. The Industrial Equipment segment sells cushion tire forklifts, electric forklifts, multi directional forklifts, narrow aisle forklifts, pneumatic tire forklifts, power stackers, rough terrain forklifts, heavy forklifts, sweepers and scrubbers, telescopic handlers, aerial work platforms, side loaders, and drop deck trailers from brands, such as Sellick, Clark, Doosan, JLG, and Baumann; and provides storage and racking equipment for warehousing, operator training, and preventative maintenance. This segment had 8 dealership locations with 5 operating in Alberta, 2 operating in Saskatchewan, and 1 operating in Manitoba. The company was founded in 2003 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/17 00:22|
|End of Day Share Price||2020/02/14 00:00|
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.