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

Adequate balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

13.0%

SOX

1.1%

CA Construction

1.0%

CA Market


1 Year Return

-46.0%

SOX

-23.9%

CA Construction

-0.4%

CA Market

SOX underperformed the Construction industry which returned -22.4% over the past year.

SOX underperformed the Market in Canada which returned -0.4% over the past year.


Share holder returns

SOXIndustryMarket
7 Day13.0%1.1%1.0%
30 Day-6.5%8.1%3.7%
90 Day-11.5%-5.1%1.3%
1 Year-41.6%-46.0%-22.4%-23.9%3.1%-0.4%
3 Year-36.6%-49.8%-6.6%-12.7%18.7%8.1%
5 Year-49.4%-64.9%6.2%-6.0%22.8%5.4%

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

2 months ago | Simply Wall St

Is Now The Time To Look At Buying Stuart Olson Inc. (TSE:SOX)?

Valuation

Is Stuart Olson undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Stuart Olson's share price is below the future cash flow value, and at a moderate discount (> 20%).

Stuart Olson's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Stuart Olson is loss making, we can't compare its value to the CA Construction industry average.

Stuart Olson is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Stuart Olson, we can't assess if its growth is good value.


Price Based on Value of Assets

Stuart Olson is good value based on assets compared to the CA Construction industry average.


Next Steps

Future Growth

How is Stuart Olson expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

170.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Stuart Olson's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Stuart Olson's earnings are expected to grow significantly at over 20% yearly.

Stuart Olson's revenue growth is expected to exceed the Canada market average.

Stuart Olson's earnings growth is expected to exceed the Canada market average.

Stuart Olson's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Stuart Olson will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Stuart Olson performed over the past 5 years?

-11.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Stuart Olson does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Stuart Olson's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Stuart Olson's 1-year growth to the North America Construction industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Stuart Olson has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Stuart Olson used its assets less efficiently than the CA Construction industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Stuart Olson improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Stuart Olson's financial position?


Financial Position Analysis

Stuart Olson's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Stuart Olson's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Stuart Olson's level of debt (66.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (69.5% vs 66.4% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.5x 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.

Whilst loss making Stuart Olson has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Stuart Olson has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 47.3% per year.


Next Steps

Dividend

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

7.64%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Stuart Olson before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Stuart Olson's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.96%).

Stuart Olson's dividend is above the markets top 25% of dividend payers in Canada (5.76%).

Stuart Olson has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Stuart Olson has only been paying a dividend for 8 years, and since then dividends per share have fallen.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

David LeMay (51yo)

6.3yrs

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

David's remuneration is higher than average for companies of similar size in Canada.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.9yrs

Average Tenure

The tenure for the Stuart Olson management team is about average.


Board Age and Tenure

1.1yrs

Average Tenure

55yo

Average Age

The average tenure for the Stuart Olson board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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


Management Team

  • Dean Beacon

    Interim Chief Financial Officer

    • Tenure: 0yrs
  • David LeMay (51yo)

    President

    • Tenure: 6.3yrs
    • 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: 5.3yrs
  • Joette Decore

    Executive Vice President of Corporate Strategy & Development

    • Tenure: 4.3yrs
    • Compensation: CA$596.42k
  • Richard Stone

    VP, General Counsel & Corporate Secretary

    • Tenure: 2.8yrs
  • Bob Myles

    Chief Operating Officer of Industrial Services Group

    • Tenure: 3.6yrs
    • Compensation: CA$891.32k
  • John Krill

    President & COO of Canem Systems Ltd

    • Tenure: 2.5yrs
    • Compensation: CA$607.16k
  • Michael UnRuh

    Finance Director

    • Tenure: 0yrs

Board Members

  • David Filmon (52yo)

    Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: CA$76.05k
  • Gary Collins (55yo)

    Director

    • Tenure: 0.3yrs
  • Chad Danard (39yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$111.10k
  • Ian Reid (64yo)

    Vice Chairman

    • Tenure: 11.1yrs
    • Compensation: CA$116.00k
  • Carmen Loberg (69yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: CA$115.00k
  • Kerry Rudd (63yo)

    Director

    • Tenure: 0.3yrs
  • David LeMay (51yo)

    President

    • Tenure: 6.3yrs
    • Compensation: CA$1.45m
  • Ray Crossley (60yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: CA$73.40k
  • Mary Hemmingsen (55yo)

    Director

    • Tenure: 0.8yrs
    • 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$87.880m
  • Shares outstanding: 27.99m
  • 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 Analysis2019/09/20 00:10
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
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.