TSX:SOX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Slightly overvalued with weak fundamentals.

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

-7.1%

SOX

-4.9%

CA Construction

-2.3%

CA Market


1 Year Return

-95.4%

SOX

5.8%

CA Construction

-8.6%

CA Market

Return vs Industry: SOX underperformed the Canadian Construction industry which returned 5.8% over the past year.

Return vs Market: SOX underperformed the Canadian Market which returned -8.6% over the past year.


Shareholder returns

SOXIndustryMarket
7 Day-7.1%-4.9%-2.3%
30 Day-27.8%-6.2%-4.5%
90 Day-85.7%3.8%5.7%
1 Year-95.4%-95.4%7.4%5.8%-5.5%-8.6%
3 Year-97.1%-97.5%-9.4%-13.9%5.8%-4.4%
5 Year-96.7%-97.6%24.3%11.6%38.3%17.1%

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$0.13) is trading below our estimate of fair value (CA$0.62)

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 CA 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 has negative assets, so we can't compare its PB Ratio to the CA Construction industry average.


Next Steps

Future Growth

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

3.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SOX's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if SOX's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOX's revenue (3.7% per year) is forecast to grow slower than the Canadian market (5.2% per year).

High Growth Revenue: SOX's revenue (3.7% 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?

-86.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOX is currently unprofitable.

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 86.6% 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 (-24.2%).


Return on Equity

High ROE: SOX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Stuart Olson's financial position?


Financial Position Analysis

Short Term Liabilities: SOX has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SOX has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SOX has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SOX's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


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: SOX has less than a year of 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 current dividend yield, its reliability and sustainability?

11.54%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SOX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SOX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SOX is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

David LeMay (52 yo)

7.25yrs

Tenure

CA$1,706,800

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 ($USD1.27M) is above average for companies of similar size in the Canadian market ($USD177.10K).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David LeMay
President7.25yrsCA$1.71m0.50%
CA$ 20.6k
Dean Beacon
Executive VP & CFO0.67yrCA$340.52kno data
Joette Decore
Executive Vice President of Corporate Strategy & Development5.25yrsCA$1.50mno data
John Krill
President & COO of Canem Systems Ltd3.5yrsCA$574.40k0.064%
CA$ 2.6k
Robert Myles
Chief Operating Officer of Industrial Services Group4.58yrsCA$1.93mno data
Hugh Harley
Investor Relations Officerno datano datano data
Richard Stone
VP, General Counsel & Corporate Secretary3.83yrsno data0.097%
CA$ 4.0k
Anna-Maria Cuglietta
Vice President of Human Resources2.5yrsno datano data
Perry Pugh
Chief Operating Officer of Industrial Specialty Servicesno dataCA$644.52kno data
Michael UnRuh
Finance Directorno datano datano data
Starr-Ann Coleman
Senior Administrative Assistant6.17yrsno datano data

4.2yrs

Average Tenure

Experienced Management: SOX's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David LeMay
President7.25yrsCA$1.71m0.50%
CA$ 20.6k
David Filmon
Independent Chairman1.33yrsCA$172.57k0.18%
CA$ 7.5k
Gary Collins
Independent Director1.33yrsCA$74.79kno data
Chad Danard
Independent Director6.33yrsCA$115.00k0.16%
CA$ 6.8k
Kerry Rudd
Independent Director1.33yrsCA$74.79kno data
Raymond Crossley
Independent Director2.08yrsCA$120.00k0.0095%
CA$ 390.1
Mary Hemmingsen
Independent Director1.83yrsCA$122.00kno data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Board: SOX's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.4%.


Top Shareholders

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: 1911
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CA$4.102m
  • Shares outstanding: 31.55m
  • 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 Analysis2020/09/26 05:31
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
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.