TSX:UNS

Stock Analysis Report

Executive Summary

Uni-Select Inc. engages in the distribution of automotive refinish, and industrial coatings and related products in North America.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Uni-Select's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-24.4%

UNS

5.4%

CA Retail Distributors

1.0%

CA Market


1 Year Return

-71.0%

UNS

-28.4%

CA Retail Distributors

-23.3%

CA Market

Return vs Industry: UNS underperformed the Canadian Retail Distributors industry which returned -28.4% over the past year.

Return vs Market: UNS underperformed the Canadian Market which returned -23.3% over the past year.


Shareholder returns

UNSIndustryMarket
7 Day-24.4%5.4%1.0%
30 Day-57.4%-21.5%-19.9%
90 Day-59.5%-32.0%-23.8%
1 Year-69.7%-71.0%-27.1%-28.4%-20.8%-23.3%
3 Year-86.0%-87.1%-8.9%-13.3%-12.7%-20.9%
5 Year-77.6%-79.7%3.0%-5.3%-0.1%-15.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Uni-Select 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: UNS (CA$4.59) is trading below our estimate of fair value (CA$12.55)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: UNS is good value based on its PB Ratio (0.3x) compared to the XN Retail Distributors industry average (2.7x).


Next Steps

Future Growth

How is Uni-Select forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

105.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: UNS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UNS's is expected to become profitable in the next 3 years.

Revenue vs Market: UNS's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: UNS's revenue is forecast to decline over the next 3 years (-1.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UNS's Return on Equity is forecast to be low in 3 years time (1.9%).


Next Steps

Past Performance

How has Uni-Select performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNS is currently unprofitable.

Growing Profit Margin: UNS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UNS is unprofitable, but has reduced losses over the past 5 years at a rate of 13.7% per year.

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

Earnings vs Industry: UNS is unprofitable, making it difficult to compare its past year earnings growth to the Retail Distributors industry (-18.5%).


Return on Equity

High ROE: UNS has a negative Return on Equity (-3.91%), as it is currently unprofitable.


Next Steps

Financial Health

How is Uni-Select's financial position?


Financial Position Analysis

Short Term Liabilities: UNS's short term assets ($817.4M) exceed its short term liabilities ($495.5M).

Long Term Liabilities: UNS's short term assets ($817.4M) exceed its long term liabilities ($583.9M).


Debt to Equity History and Analysis

Debt Level: UNS's debt to equity ratio (90.2%) is considered high.

Reducing Debt: UNS's debt to equity ratio has increased from 48.1% to 90.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: UNS's debt is covered by short term assets (assets are 1.8x 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: UNS has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: UNS has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Uni-Select's current dividend yield, its reliability and sustainability?

7.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UNS's dividend (7.87%) is higher than the bottom 25% of dividend payers in the Canadian market (2.67%).

High Dividend: UNS's dividend (7.87%) is low compared to the top 25% of dividend payers in the Canadian market (8.63%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: UNS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: UNS's dividends in 3 years are forecast to be well covered by earnings (21.5% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Anthony Windom

0.92

Tenure

US$1,340,753

Compensation

Mr. Brent Windom, also known as Anthony, has been President and Chief Executive Officer at Uni-Select Inc. since May 1, 2019 and its Director since May 2, 2019. Mr. Windom is the President and COO of Canad ...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD943.76K) is above average for companies of similar size in the Canadian market ($USD158.02K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brent Windom
President0.92yrUS$1.34m0.029% $57.4k
Eric Bussieres
Executive VP & CFO4.42yrsUS$674.35k0.019% $37.2k
Me Juneau
Chief Legal & Administrative Officer and Corporate Secretary1.25yrsUS$528.06k0.0031% $6.0k
Peter Sephton
President & CEO of European Automotive Group2.67yrsUS$2.93m0.0020% $3.9k
Helene Baril
Director of Investor Relationsno datano datano data
Annie Paré
Director of Communicationsno datano datano data
Guy Archambault
Vice President of Corporate Developmentno datano datano data
Michel Ravacley
Senior Vice President of Supply Chain & Integrationno dataUS$482.34kno data
Dominique Denicourt
Chief People Officer & VP of Human Resources of Canadian Automotive Group0.58yrno datano data
Joe Mccorry
President & Chief Operating Officer of FinishMaster0.083yrno datano data

1.1yrs

Average Tenure

Experienced Management: UNS's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Brent Windom
President0.92yrUS$1.34m0.029% $57.4k
Michelle Cormier
Independent Chairman of the Board1.58yrsUS$185.96k0.0094% $18.4k
David Samuel
Director0.25yrno datano data
Pierre Raymond
Independent Director1.08yrsno datano data
Richard Roy
Non-Independent Non-Executive Director11.92yrsUS$133.26k0.047% $91.8k
Stéphane Gonthier
Independent Director0.92yrno datano data
Matthew Kunica
Director0.25yrno datano data
Frederick Mifflin
Independent Director0.92yrno data0.0059% $11.5k
Robert Molenaar
Independent Director2.92yrsUS$187.57k0.0047% $9.2k

0.9yrs

Average Tenure

60yo

Average Age

Experienced Board: UNS's board of directors are not considered experienced ( 0.9 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: UNS 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

Uni-Select Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Uni-Select Inc.
  • Ticker: UNS
  • Exchange: TSX
  • Founded: 1968
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: CA$194.558m
  • Shares outstanding: 42.39m
  • Website: https://www.uniselect.com

Number of Employees


Location

  • Uni-Select Inc.
  • 170 Industriel Boulevard
  • Boucherville
  • Quebec
  • J4B 2X3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNSTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
UNIE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988
U04DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988

Biography

Uni-Select Inc. engages in the distribution of automotive refinish, and industrial coatings and related products in North America. It operates through FinishMaster U.S., Canadian Automotive Group, and The Parts Alliance U.K. segments. The company also distributes automotive aftermarket parts in Canada and the United Kingdom. It operates 15 distribution centers and 434 company-owned stores. Uni-Select Inc. was founded in 1968 and is headquartered in Boucherville, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 01:57
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
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.