TSX:UNS

Stock Analysis Report

Executive Summary

Uni-Select Inc. distributes automotive refinish, and industrial paint and related products in the United States, Canada, and the United Kingdom.

Rewards

PE ratio (13.6x) is below the Canadian market (15.8x)

Earnings are forecast to grow 6% per year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Profit margins (1.6%) are lower than last year (2.7%)



Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Genuine Parts

NYSE:GPC

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.1%

UNS

-0.6%

CA Retail Distributors

0.4%

CA Market


1 Year Return

-37.1%

UNS

18.0%

CA Retail Distributors

10.1%

CA Market

Return vs Industry: UNS underperformed the Canadian Retail Distributors industry which returned 16.4% over the past year.

Return vs Market: UNS underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

UNSIndustryMarket
7 Day7.1%-0.6%0.4%
30 Day14.2%-2.0%2.1%
90 Day15.3%2.6%6.4%
1 Year-35.1%-37.1%20.0%18.0%13.6%10.1%
3 Year-57.2%-59.7%19.9%14.2%17.2%6.6%
5 Year-13.5%-20.4%43.6%32.0%37.5%17.3%

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?

14.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UNS (CA$11.37) is trading above our estimate of fair value (CA$5.58)

Significantly Below Fair Value: UNS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UNS is good value based on its PE Ratio (13.6x) compared to the Retail Distributors industry average (18.7x).

PE vs Market: UNS is good value based on its PE Ratio (13.6x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: UNS is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: UNS is good value based on its PB Ratio (0.7x) compared to the XN Retail Distributors industry average (4x).


Next Steps

Future Growth

How is Uni-Select forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNS's forecast earnings growth (6% per year) is above the savings rate (1.4%).

Earnings vs Market: UNS's earnings (6% per year) are forecast to grow slower than the Canadian market (10.3% per year).

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

Revenue vs Market: UNS's revenue (1.3% per year) is forecast to grow slower than the Canadian market (5% per year).

High Growth Revenue: UNS's revenue (1.3% 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 UNS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNS has high quality earnings.

Growing Profit Margin: UNS's current net profit margins (1.6%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: UNS's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: UNS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UNS had negative earnings growth (-42.8%) over the past year, making it difficult to compare to the Retail Distributors industry average (-8.6%).


Return on Equity

High ROE: UNS's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Uni-Select's financial position?


Financial Position Analysis

Short Term Liabilities: UNS's short term assets ($832.7M) exceed its short term liabilities ($526.6M).

Long Term Liabilities: UNS's short term assets ($832.7M) exceed its long term liabilities ($569.7M).


Debt to Equity History and Analysis

Debt Level: UNS's debt to equity ratio (81.8%) is considered high.

Reducing Debt: UNS's debt to equity ratio has increased from 49.2% to 81.8% over the past 5 years.

Debt Coverage: UNS's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: UNS's interest payments on its debt are not well covered by EBIT (2.4x coverage).


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 1.9x debt).


Next Steps

Dividend

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

3.01%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.9%markettop25%5.5%industryaverage2.3%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: UNS's dividend (3.19%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: UNS's dividend (3.19%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


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: With its reasonably low payout ratio (41.4%), UNS's dividend payments are well 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 Uni-Select's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Anthony Windom 0

0.7yrs

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 is its Director since May 2, 2019. Mr. Windom served as President and Chief  ...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD1.03M) is about average for companies of similar size in the Canadian market ($USD1.00M).

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


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: UNS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

60yo

Average Age

Experienced Board: UNS's board of directors are not considered experienced ( 0.8 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.


Ownership Breakdown

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


Management Team

  • Peter Sephton (60yo)

    President & CEO of European Automotive Group

    • Tenure: 2.4yrs
    • Compensation: US$2.93m
  • Michel Ravacley (65yo)

    Senior Vice President of Supply Chain & Integration

    • Compensation: US$482.34k
  • Michel Charbonneau

    Vice President of Sales & Marketing - PBE Division

    • Me Juneau

      Chief Legal & Administrative Officer and Corporate Secretary

      • Tenure: 1yrs
      • Compensation: US$528.06k
    • Guy Archambault

      Vice President of Corporate Development

      • Anthony Windom

        President

        • Tenure: 0.7yrs
        • Compensation: US$1.34m
      • Helene Baril

        Director of Investor Relations

        • Neil Croxson

          President & COO of European Automotive Group

          • Tenure: 0.8yrs
        • Eric Bussieres

          Executive VP & CFO

          • Tenure: 4.2yrs
          • Compensation: US$674.35k
        • Dominique Denicourt

          Chief People Officer & VP of Human Resources of Canadian Automotive Group

          • Tenure: 0.3yrs

        Board Members

        • Michelle Cormier (62yo)

          Independent Chairman of the Board

          • Tenure: 1.3yrs
          • Compensation: US$185.96k
        • Dave Samuel (54yo)

          Director

          • Pierre Raymond (64yo)

            Independent Director

            • Tenure: 0.8yrs
          • Richard Roy (63yo)

            Non-Independent Non-Executive Director

            • Tenure: 11.7yrs
            • Compensation: US$133.26k
          • Stéphane Gonthier (52yo)

            Independent Director

            • Tenure: 0.7yrs
          • Matt Kunica

            Director

            • Anthony Windom

              President

              • Tenure: 0.7yrs
              • Compensation: US$1.34m
            • Fred Mifflin (60yo)

              Independent Director

              • Tenure: 0.7yrs
            • Rob Molenaar (58yo)

              Independent Director

              • Tenure: 2.7yrs
              • Compensation: US$187.57k

            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$514.582m
            • 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. distributes automotive refinish, and industrial paint and related products in the United States, Canada, and the United Kingdom. It operates through FinishMaster US, Canadian Automotive Group, and The Parts Alliance UK segments. The company also distributes automotive original equipment manufacturer and aftermarket parts. The company was founded in 1968 and is based in Boucherville, Canada. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/23 23:45
            End of Day Share Price2020/01/23 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.