TSX:SIS

Stock Analysis Report

Executive Summary

Savaria Corporation designs, engineers, and manufactures products for personal mobility in Canada, the United States, and internationally.

Rewards

Trading at 18.9% below its fair value

Earnings are forecast to grow 15.19% per year

Earnings grew by 4.2% over the past year

Risk Analysis

Unstable dividend track record

Profit margins (6%) are lower than last year (8.6%)

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

SIS

1.6%

CA Machinery

0.1%

CA Market


1 Year Return

11.9%

SIS

5.0%

CA Machinery

12.6%

CA Market

Return vs Industry: SIS exceeded the Canadian Machinery industry which returned 5% over the past year.

Return vs Market: SIS matched the Canadian Market which returned 12.6% over the past year.


Shareholder returns

SISIndustryMarket
7 Day-0.4%1.6%0.1%
30 Day-2.7%-1.6%-0.3%
90 Day14.8%-1.8%0.3%
1 Year15.7%11.9%8.0%5.0%16.3%12.6%
3 Year36.1%26.1%3.0%-3.7%16.1%5.4%
5 Year287.2%238.1%28.1%17.6%33.9%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIS (CA$14.03) is trading below our estimate of fair value (CA$17.3)

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


Price To Earnings Ratio

PE vs Industry: SIS is poor value based on its PE Ratio (29.8x) compared to the Machinery industry average (21.2x).

PE vs Market: SIS is poor value based on its PE Ratio (29.8x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: SIS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SIS is overvalued based on its PB Ratio (2.6x) compared to the CA Machinery industry average (2.3x).


Next Steps

Future Growth

How is Savaria forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIS's forecast earnings growth (15.2% per year) is above the savings rate (1.4%).

Earnings vs Market: SIS's earnings (15.2% per year) are forecast to grow faster than the Canadian market (9.9% per year).

High Growth Earnings: SIS's earnings are forecast to grow, but not significantly.

Revenue vs Market: SIS's revenue (5.5% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: SIS's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIS's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Savaria performed over the past 5 years?

24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIS has high quality earnings.

Growing Profit Margin: SIS's current net profit margins (6%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: SIS's earnings have grown significantly by 24.7% per year over the past 5 years.

Accelerating Growth: SIS's earnings growth over the past year (4.2%) is below its 5-year average (24.7% per year).

Earnings vs Industry: SIS earnings growth over the past year (4.2%) exceeded the Machinery industry -20.7%.


Return on Equity

High ROE: SIS's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Savaria's financial position?


Financial Position Analysis

Short Term Liabilities: SIS's short term assets (CA$180.0M) exceed its short term liabilities (CA$73.8M).

Long Term Liabilities: SIS's short term assets (CA$180.0M) exceed its long term liabilities (CA$112.0M).


Debt to Equity History and Analysis

Debt Level: SIS's debt to equity ratio (23%) is considered satisfactory.

Reducing Debt: SIS's debt to equity ratio has reduced from 42.3% to 23% over the past 5 years.

Debt Coverage: SIS's debt is well covered by operating cash flow (38.3%).

Interest Coverage: SIS's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: SIS has a high level of physical assets or inventory.

Debt Coverage by Assets: SIS's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Savaria's current dividend yield, its reliability and sustainability?

3.28%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.0%markettop25%5.6%industryaverage5.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SIS's dividend (3.28%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: SIS's dividend (3.28%) is low compared to the top 25% of dividend payers in the Canadian market (5.65%).


Stability and Growth of Payments

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

Growing Dividend: SIS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.2%), SIS's payments are 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

What is the CEO of Savaria's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average management tenure


CEO

Marcel Bourassa 0

17.9yrs

Tenure

CA$500,000

Compensation

Mr. Marcel Bourassa, BAA, has been the Chief Executive Officer and President of Savaria Corporation a holding of Concord Elevator, Inc. since January 2002 and serves as Secretary. Mr. Bourassa has been the ...


CEO Compensation Analysis

Compensation vs Market: Marcel's total compensation ($USD378.76K) is below average for companies of similar size in the Canadian market ($USD1.08M).

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


Management Age and Tenure

8.0yrs

Average Tenure

Experienced Management: SIS's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

Experienced Board: SIS's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: SIS insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellCA$933,31318 Nov 19
Jean-Marie Bourassa
EntityIndividual
Role
Member of the Board of Directors
Director
Shares64,667
Max PriceCA$14.47
BuyCA$18,07501 Oct 19
Vince Sciamanna
EntityIndividual
Role
Unit President
President of Garaventa Lift group
Shares1,500
Max PriceCA$12.05
BuyCA$35,15405 Sep 19
Alain Tremblay
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceCA$11.72
BuyCA$543,50002 Sep 19
9099-4591 Québec Inc.
EntityCompany
Shares50,000
Max PriceCA$10.87
BuyCA$114,00020 Aug 19
Alexandre Bourassa
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares10,000
Max PriceCA$11.40
BuyCA$17,16020 Aug 19
Vince Sciamanna
EntityIndividual
Role
Unit President
President of Garaventa Lift group
Shares1,500
Max PriceCA$11.44
BuyCA$18,75007 Jun 19
Vince Sciamanna
EntityIndividual
Role
Unit President
President of Garaventa Lift group
Shares1,500
Max PriceCA$12.50
BuyCA$19,50031 May 19
Vince Sciamanna
EntityIndividual
Role
Unit President
President of Garaventa Lift group
Shares1,500
Max PriceCA$13.00
BuyCA$4,140,00410 May 19
9099-4591 Québec Inc.
EntityCompany
Shares306,667
Max PriceCA$13.50
BuyCA$319,50425 Apr 19
Jean-Marie Bourassa
EntityIndividual
Role
Member of the Board of Directors
Director
Shares23,667
Max PriceCA$13.50
BuyCA$319,49125 Apr 19
Sébastien Bourassa
EntityIndividual
Role
Member of the Board of Directors
VP of Operations & Integration and Director
Shares23,666
Max PriceCA$13.50
SellCA$212,92223 Jan 19
Peter Drutz
EntityIndividual
Role
Lead Director
Lead Director
Shares14,441
Max PriceCA$14.74
SellCA$76,25021 Jan 19
Sylvain Dumoulin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$15.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10%.


Management Team

  • Jim Ferguson (62yo)

    Chief Executive Officer of Span-America Medical Systems

    • Tenure: 0yrs
    • Compensation: CA$500.98k
  • Marcel Bourassa

    President

    • Tenure: 17.9yrs
    • Compensation: CA$500.00k
  • Claude Dumoulin

    Vice President of Manufacturing for Savaria Vehicle Group

    • Tenure: 0yrs
    • Compensation: CA$162.66k
  • Steven Perreault

    Corporate Controller

    • Tenure: 12.8yrs
  • Sébastien Bourassa

    VP of Operations & Integration and Director

    • Tenure: 2.4yrs
    • Compensation: CA$206.00k
  • Eric Bishun

    General Manager of Savaria Sales

    • Tenure: 0yrs
    • Compensation: CA$192.73k
  • Charles Rimbert

    Vice President of Corporate Development

    • Tenure: 3.3yrs
    • Compensation: CA$276.54k
  • Vince Sciamanna

    President of Garaventa Lift group

    • Tenure: 0yrs
    • Compensation: CA$556.49k
  • Alexandre Bourassa

    Vice President of Sales

    • Tenure: 0yrs
  • Mauro Ferrara

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • Marcel Bourassa

    President

    • Tenure: 17.9yrs
    • Compensation: CA$500.00k
  • Jean-Marie Bourassa (68yo)

    Director

    • Tenure: 17.8yrs
  • Peter Drutz (64yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: CA$100.25k
  • Jean-Louis Chapdelaine

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: CA$100.25k
  • Sylvain Dumoulin

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$100.25k
  • Alain Tremblay

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: CA$100.25k
  • Sébastien Bourassa

    VP of Operations & Integration and Director

    • Tenure: 2.4yrs
    • Compensation: CA$206.00k
  • Caroline Bérubé

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: CA$100.25k

Company Information

Savaria Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Savaria Corporation
  • Ticker: SIS
  • Exchange: TSX
  • Founded: 1979
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: CA$708.030m
  • Shares outstanding: 50.47m
  • Website: https://www.savaria.com

Number of Employees


Location

  • Savaria Corporation
  • 4350 Highway 13
  • Laval
  • Quebec
  • H7R 6E9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SISTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2001
SISX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2001
S97DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2001

Biography

Savaria Corporation designs, engineers, and manufactures products for personal mobility in Canada, the United States, and internationally. The company operates in three segments: Accessibility, Adapted Veh ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 23:48
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.