Cervus Equipment
Market Cap
CA$198.6m
Last Updated
2021/01/23 23:53 UTC
Data Sources
Company Financials +
Executive Summary
Cervus Equipment Corporation provides equipment solutions to customers in agriculture, transportation, and industrial markets in Canada, Australia, and New Zealand. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with adequate balance sheet.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CERV's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-2.6%
CERV
1.1%
CA Trade Distributors
-0.2%
CA Market
1 Year Return
43.7%
CERV
24.6%
CA Trade Distributors
1.5%
CA Market
Return vs Industry: CERV exceeded the Canadian Trade Distributors industry which returned 24.6% over the past year.
Return vs Market: CERV exceeded the Canadian Market which returned 1.4% over the past year.
Shareholder returns
| CERV | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.6% | 1.1% | -0.2% |
| 30 Day | 11.5% | 3.0% | 2.7% |
| 90 Day | 53.0% | 13.3% | 12.5% |
| 1 Year | 47.8%43.7% | 28.7%24.6% | 5.2%1.5% |
| 3 Year | -1.6%-11.1% | 23.1%11.8% | 13.5%2.7% |
| 5 Year | 15.2%-0.5% | 129.7%97.8% | 60.0%35.5% |
Long-Term 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
2 days ago | Simply Wall St
Can You Imagine How Cervus Equipment's (TSE:CERV) Shareholders Feel About The 43% Share Price Increase?4 weeks ago | Simply Wall St
Cervus Equipment Corporation (TSE:CERV) Will Pay A CA$0.06 Dividend In Three Days1 month ago | Simply Wall St
Is Now The Time To Look At Buying Cervus Equipment Corporation (TSE:CERV)?Valuation
Is Cervus Equipment undervalued compared to its fair value and its price relative to the market?
15.99x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CERV (CA$12.93) is trading above our estimate of fair value (CA$11.97)
Significantly Below Fair Value: CERV is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CERV's PE Ratio (16x) is in line with the CA Trade Distributors industry average.
PE vs Market: CERV is good value based on its PE Ratio (16x) compared to the Canadian market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: CERV is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: CERV is good value based on its PB Ratio (0.8x) compared to the CA Trade Distributors industry average (1.5x).
Next Steps
Future Growth
How is Cervus Equipment forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
14.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CERV's forecast earnings growth (14.2% per year) is above the savings rate (1.5%).
Earnings vs Market: CERV's earnings (14.2% per year) are forecast to grow slower than the Canadian market (26.1% per year).
High Growth Earnings: CERV's earnings are forecast to grow, but not significantly.
Revenue vs Market: CERV's revenue (4.2% per year) is forecast to grow slower than the Canadian market (8% per year).
High Growth Revenue: CERV's revenue (4.2% 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
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Past Performance
How has Cervus Equipment performed over the past 5 years?
13.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CERV has high quality earnings.
Growing Profit Margin: CERV's current net profit margins (1%) are higher than last year (0.3%).
Past Earnings Growth Analysis
Earnings Trend: CERV has become profitable over the past 5 years, growing earnings by 13% per year.
Accelerating Growth: CERV's earnings growth over the past year (276.9%) exceeds its 5-year average (13% per year).
Earnings vs Industry: CERV earnings growth over the past year (276.9%) exceeded the Trade Distributors industry 27.2%.
Return on Equity
High ROE: CERV's Return on Equity (5.2%) is considered low.
Next Steps
Financial Health
How is Cervus Equipment's financial position?
Financial Position Analysis
Short Term Liabilities: CERV's short term assets (CA$336.3M) exceed its short term liabilities (CA$210.0M).
Long Term Liabilities: CERV's short term assets (CA$336.3M) exceed its long term liabilities (CA$93.4M).
Debt to Equity History and Analysis
Debt Level: CERV's debt to equity ratio (45.6%) is considered high.
Reducing Debt: CERV's debt to equity ratio has reduced from 177.1% to 45.6% over the past 5 years.
Debt Coverage: CERV's debt is well covered by operating cash flow (70%).
Interest Coverage: CERV's interest payments on its debt are not well covered by EBIT (2.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Cervus Equipment current dividend yield, its reliability and sustainability?
1.55%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CERV's dividend (1.55%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.55%).
High Dividend: CERV's dividend (1.55%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).
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 reasonably low payout ratio (30.9%), CERV's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CERV's dividends in 3 years are forecast to be well covered by earnings (17.8% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Angela Lekatsas (58 yo)
1.67yrs
Tenure
CA$347,224
Compensation
Ms. Angela S. Lekatsas, B. Comm., CA, CPA (Illinois) has been a Vice President and Treasurer of Agrium Inc. since 2011. Ms. Lekatsas serves as a President and Chief Executive Officer at Cervus Equipment Co...
CEO Compensation Analysis
Compensation vs Market: Angela's total compensation ($USD272.85K) is below average for companies of similar size in the Canadian market ($USD507.26K).
Compensation vs Earnings: Angela's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.67yrs | CA$347.22k | 0.15% CA$ 294.8k | |
| Chief Financial Officer | 3yrs | CA$308.05k | 0.12% CA$ 241.7k | |
| Vice President of Operations | 6.5yrs | CA$329.77k | no data | |
| Chief Operating Officer | no data | CA$210.51k | 0.0079% CA$ 15.6k | |
| Vice President of People | 6.5yrs | CA$262.46k | no data | |
| Vice President of Operations - Agriculture Canada | 8.75yrs | CA$873.41k | no data | |
| Corporate Counsel & Corporate Secretary | 2.75yrs | no data | 0.011% CA$ 21.3k | |
| Managing Director | no data | CA$238.68k | no data | |
| Managing Director of Australia & New Zealand Agriculture | 1.5yrs | no data | no data | |
| Director of Information Services | no data | no data | no data | |
| Director of Human Resources | no data | no data | no data |
3.0yrs
Average Tenure
58yo
Average Age
Experienced Management: CERV's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.67yrs | CA$347.22k | 0.15% CA$ 294.8k | |
| Independent Chairman of the Board | 8.75yrs | CA$208.18k | 18.11% CA$ 36.0m | |
| Lead Independent Director | 0.083yr | CA$80.20k | 0.25% CA$ 489.7k | |
| Independent Director | 3.33yrs | CA$68.90k | 0.067% CA$ 133.2k | |
| Independent Director | 13yrs | CA$86.04k | 0.53% CA$ 1.1m | |
| Independent Director | 1.33yrs | CA$21.53k | no data |
5.7yrs
Average Tenure
62yo
Average Age
Experienced Board: CERV's board of directors are considered experienced (5.7 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 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$198.643m
- Shares outstanding: 15.36m
- 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
| 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 23:53 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.