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

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

CERVIndustryMarket
7 Day-2.6%1.1%-0.2%
30 Day11.5%3.0%2.7%
90 Day53.0%13.3%12.5%
1 Year47.8%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 Year15.2%-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

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


Next Steps

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).


Next Steps

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

NamePositionTenureCompensationOwnership
Angela Lekatsas
President1.67yrsCA$347.22k0.15%
CA$ 294.8k
Adam Lowther
Chief Financial Officer3yrsCA$308.05k0.12%
CA$ 241.7k
Fred Hnatiw
Vice President of Operations6.5yrsCA$329.77kno data
Scott Johnston
Chief Operating Officerno dataCA$210.51k0.0079%
CA$ 15.6k
Stella Cosby
Vice President of People6.5yrsCA$262.46kno data
Calvin Johnson
Vice President of Operations - Agriculture Canada8.75yrsCA$873.41kno data
Devin Mylrea
Corporate Counsel & Corporate Secretary2.75yrsno data0.011%
CA$ 21.3k
Mark Bradley
Managing Directorno dataCA$238.68kno data
Tim Ormrod
Managing Director of Australia & New Zealand Agriculture1.5yrsno datano data
Mike McCrae
Director of Information Servicesno datano datano data
Steven Feland
Director of Human Resourcesno datano datano data

3.0yrs

Average Tenure

58yo

Average Age

Experienced Management: CERV's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Angela Lekatsas
President1.67yrsCA$347.22k0.15%
CA$ 294.8k
Peter Lacey
Independent Chairman of the Board8.75yrsCA$208.18k18.11%
CA$ 36.0m
Steven Collicutt
Lead Independent Director0.083yrCA$80.20k0.25%
CA$ 489.7k
Daniel Sobic
Independent Director3.33yrsCA$68.90k0.067%
CA$ 133.2k
Donald Bell
Independent Director13yrsCA$86.04k0.53%
CA$ 1.1m
Wendy Henkelman
Independent Director1.33yrsCA$21.53kno 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

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 Analysis2021/01/23 23:53
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
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.