TSX:SOX

Stock Analysis Report

Executive Summary

Stuart Olson Inc. provides general contracting and electrical building systems contracting services to the institutional and commercial construction markets in Canada.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SOX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.2%

SOX

-3.2%

CA Construction

0.2%

CA Market


1 Year Return

-69.1%

SOX

-10.6%

CA Construction

8.3%

CA Market

Return vs Industry: SOX underperformed the Canadian Construction industry which returned -10.6% over the past year.

Return vs Market: SOX underperformed the Canadian Market which returned 8.3% over the past year.


Shareholder returns

SOXIndustryMarket
7 Day25.2%-3.2%0.2%
30 Day-47.3%7.7%3.0%
90 Day-44.6%21.1%5.0%
1 Year-66.5%-69.1%-9.1%-10.6%11.9%8.3%
3 Year-61.8%-69.8%-3.3%-9.2%16.8%6.3%
5 Year-66.5%-77.3%28.6%14.0%29.5%10.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOX (CA$1.64) is trading below our estimate of fair value (CA$8.75)

Significantly Below Fair Value: SOX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SOX is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: SOX 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 SOX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOX is good value based on its PB Ratio (0.2x) compared to the CA Construction industry average (2.3x).


Next Steps

Future Growth

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

84.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SOX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SOX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SOX's revenue (4.2% per year) is forecast to grow slower than the Canadian market (4.8% per year).

High Growth Revenue: SOX'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 SOX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Stuart Olson performed over the past 5 years?

-21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOX has large one-off items impacting its financial results.

Growing Profit Margin: SOX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOX is unprofitable, and losses have increased over the past 5 years at a rate of -21.5% per year.

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

Earnings vs Industry: SOX is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (3.5%).


Return on Equity

High ROE: SOX has a negative Return on Equity (-4.24%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stuart Olson's financial position?


Financial Position Analysis

Short Term Liabilities: SOX's short term assets (CA$416.5M) exceeds its short term liabilities (CA$354.2M)

Long Term Liabilities: SOX's short term assets (CA$416.5M) exceeds its long term liabilities (190.6M)


Debt to Equity History and Analysis

Debt Level: SOX's debt to equity ratio (106%) is considered high.

Reducing Debt: SOX's debt to equity ratio has increased from 70.6% to 106% over the past 5 years.


Balance Sheet

Inventory Level: SOX has a low level of unsold assets or inventory.

Debt Coverage by Assets: SOX's debt is covered by short term assets (assets are 2.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if SOX has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SOX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

14.63%

Current Dividend Yield


Dividend Yield vs Market

company14.6%marketbottom25%2.0%markettop25%5.7%industryaverage1.6%forecastin3Years14.6%

Current dividend yield vs market & industry

Notable Dividend: SOX's dividend (14.63%) is higher than the bottom 25% of dividend payers in the Canadian market (1.96%).

High Dividend: SOX's dividend (14.63%) is in the top 25% of dividend payers in the Canadian market (5.73%)


Stability and Growth of Payments

Stable Dividend: SOX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SOX has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: SOX 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

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

3.8yrs

Average management tenure


CEO

David LeMay (51yo)

6.4yrs

Tenure

CA$1,449,446

Compensation

Mr. David J. LeMay, M.B.A., has been the Chief Executive Officer of Stuart Olson Inc. since June 1, 2013 and has been its President since July 2012. Mr. LeMay has 10 plus years of branch management experie ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.09M) is above average for companies of similar size in the Canadian market ($USD135.52K).

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


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: SOX's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

Experienced Board: SOX's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$13,23019 Mar 19
Raymond Crossley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceCA$4.41
BuyCA$254,15609 Mar 19
David Filmon
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares58,000
Max PriceCA$4.38
BuyCA$10,07920 Dec 18
Carmen Loberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,100
Max PriceCA$4.80
BuyCA$9,70020 Dec 18
C.T. Aeroprojects Inc.
EntityCompany
Shares2,000
Max PriceCA$4.85

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dean Beacon

    Interim Chief Financial Officer

    • Tenure: 0.2yrs
  • David LeMay (51yo)

    President

    • Tenure: 6.4yrs
    • Compensation: CA$1.45m
  • Perry Pugh

    Chief Operating Officer of Industrial Specialty Services

    • Tenure: 0yrs
    • Compensation: CA$644.52k
  • Paul Polson

    Senior Vice President of Business Development & Community Engagement

    • Tenure: 5.4yrs
  • Joette Decore

    Executive Vice President of Corporate Strategy & Development

    • Tenure: 4.4yrs
    • Compensation: CA$596.42k
  • Richard Stone

    VP, General Counsel & Corporate Secretary

    • Tenure: 3yrs
  • Bob Myles

    Chief Operating Officer of Industrial Services Group

    • Tenure: 3.8yrs
    • Compensation: CA$891.32k
  • John Krill

    President & COO of Canem Systems Ltd

    • Tenure: 2.7yrs
    • Compensation: CA$607.16k
  • Michael UnRuh

    Finance Director

    • Tenure: 0yrs

Board Members

  • David Filmon (52yo)

    Chairman of the Board

    • Tenure: 0.5yrs
    • Compensation: CA$76.05k
  • Gary Collins (55yo)

    Independent Director

    • Tenure: 0.5yrs
  • Chad Danard (39yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: CA$111.10k
  • Ian Reid (64yo)

    Independent Vice Chairman

    • Tenure: 11.3yrs
    • Compensation: CA$116.00k
  • Carmen Loberg (69yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: CA$115.00k
  • Kerry Rudd (63yo)

    Independent Director

    • Tenure: 0.5yrs
  • David LeMay (51yo)

    President

    • Tenure: 6.4yrs
    • Compensation: CA$1.45m
  • Ray Crossley (60yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: CA$73.40k
  • Mary Hemmingsen (55yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: CA$11.57k

Company Information

Stuart Olson Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stuart Olson Inc.
  • Ticker: SOX
  • Exchange: TSX
  • Founded: 1981
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CA$46.321m
  • Shares outstanding: 28.07m
  • Website: https://www.stuartolson.com

Number of Employees


Location

  • Stuart Olson Inc.
  • 4820 Richard Road SW
  • Suite 600
  • Calgary
  • Alberta
  • T3E 6L1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOXTSX (The Toronto Stock Exchange)YesClass A Common SharesCACADSep 1988
CUUH.FOTCPK (Pink Sheets LLC)YesClass A Common SharesUSUSDSep 1988

Biography

Stuart Olson Inc. provides general contracting and electrical building systems contracting services to the institutional and commercial construction markets in Canada. The company’s Buildings Group segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 23:35
End of Day Share Price2019/11/21 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.