DB:5WJ

Stock Analysis Report

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Executive Summary

Wajax Corporation, an integrated distribution company, provides sales, parts, and services to construction, forestry, mining, industrial/commercial, oil sands, transportation, metal processing, government, utilities, and oil and gas sectors.


Snowflake Analysis

Good value with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 5WJ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.0%

5WJ

-0.4%

DE Trade Distributors

2.7%

DE Market


1 Year Return

-30.2%

5WJ

19.9%

DE Trade Distributors

10.3%

DE Market

Return vs Industry: 5WJ underperformed the German Trade Distributors industry which returned 19% over the past year.

Return vs Market: 5WJ underperformed the German Market which returned 8.8% over the past year.


Shareholder returns

5WJIndustryMarket
7 Day20.0%-0.4%2.7%
30 Day27.4%2.7%1.9%
90 Day44.0%19.7%17.0%
1 Year-23.7%-30.2%22.8%19.9%12.8%10.3%
3 Year-33.3%-44.7%16.1%7.6%7.1%-1.4%
5 Year-35.1%-51.7%7.9%-4.2%18.2%2.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

8.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 5WJ (€7.2) is trading below our estimate of fair value (€7.87)

Significantly Below Fair Value: 5WJ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 5WJ is good value based on its PE Ratio (6.4x) compared to the DE Trade Distributors industry average (19.7x).

PE vs Market: 5WJ is good value based on its PE Ratio (6.4x) compared to the German market (21.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5WJ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5WJ is good value based on its PB Ratio (0.7x) compared to the DE Trade Distributors industry average (1x).


Next Steps

Future Growth

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

0.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 5WJ's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if 5WJ's earnings are forecast to grow faster than the German market

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

Revenue vs Market: 5WJ's revenue (0.8% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: 5WJ's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5WJ's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Wajax performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5WJ has high quality earnings.

Growing Profit Margin: 5WJ's current net profit margins (2.3%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 5WJ's earnings have grown significantly by 28.2% per year over the past 5 years.

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

Earnings vs Industry: 5WJ had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Trade Distributors industry average (-26.8%).


Return on Equity

High ROE: 5WJ's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Wajax's financial position?


Financial Position Analysis

Short Term Liabilities: 5WJ's short term assets (CA$698.0M) exceed its short term liabilities (CA$302.8M).

Long Term Liabilities: 5WJ's short term assets (CA$698.0M) exceed its long term liabilities (CA$411.7M).


Debt to Equity History and Analysis

Debt Level: 5WJ's debt to equity ratio (89.2%) is considered high.

Reducing Debt: 5WJ's debt to equity ratio has increased from 49.3% to 89.2% over the past 5 years.

Debt Coverage: 5WJ's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: 5WJ's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Wajax current dividend yield, its reliability and sustainability?

9.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5WJ's dividend (9.21%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: 5WJ's dividend (9.21%) is in the top 25% of dividend payers in the German market (3.77%)


Stability and Growth of Payments

Stable Dividend: 5WJ's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5WJ's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), 5WJ's dividend payments are 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

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

1.3yrs

Average management tenure


CEO

A. Foote (59 yo)

8.42yrs

Tenure

CA$2,383,800

Compensation

Mr. A. Mark Foote has been the Chief Executive Officer and President of Wajax Corporation since March 05, 2012. Mr. Foote served as President and Chief Executive Officer (Canada) of Zellers Inc. since Augu ...


CEO Compensation Analysis

Compensation vs Market: A.'s total compensation ($USD1.78M) is above average for companies of similar size in the German market ($USD772.30K).

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


Leadership Team

NamePositionTenureCompensationOwnership
A. Foote
President8.42yrsCA$2.38m0.51%
CA$ 698.5k
Stuart Auld
Chief Financial Officer1.25yrsCA$781.38k0.022%
CA$ 30.3k
Steven Deck
Chief Operating Officer0.75yrCA$914.04k0.055%
CA$ 75.5k
Andrew Tam
General Counsel & Corporate Secretary9.58yrsCA$452.02k0.027%
CA$ 36.6k
Trevor Carson
VP of Supply Chain & Corporate Developmentno datano data0.0099%
CA$ 13.7k
Irene Stretton
Vice President of Human Resources1.25yrsno data0.0019%
CA$ 2.7k
Tania Casadinho
VP of Corporate & Controllerno datano datano data

1.3yrs

Average Tenure

Experienced Management: 5WJ's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
A. Foote
President8.42yrsCA$2.38m0.51%
CA$ 698.5k
Douglas Carty
Independent Director11.58yrsCA$138.50kno data
John Eby
Independent Director14yrsCA$128.50k0.050%
CA$ 68.9k
Sylvia Chrominska
Independent Director5.25yrsCA$135.00k0.055%
CA$ 75.8k
Edward Barrett
Independent Director14.42yrsCA$124.50k0.00070%
CA$ 966.1
Robert Dexter
Independent Chairman of the Board3.25yrsCA$225.00k1.65%
CA$ 2.3m
H. MacNeill
Honorary Directorno datano datano data
Thomas Alford
Independent Director5.67yrsCA$121.50k0.20%
CA$ 274.2k
Alexander Taylor
Independent Director11.58yrsCA$120.00k0.030%
CA$ 41.3k
Leslie Abi-Karam
Independent Director0.25yrno datano data
Vasuki Uthayakumar
Independent Director0.25yrno datano data

7.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 5WJ's board of directors are considered experienced (7 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Wajax Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wajax Corporation
  • Ticker: 5WJ
  • Exchange: DB
  • Founded: 1858
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: CA$217.565m
  • Listing Market Cap: CA$138.013m
  • Shares outstanding: 20.03m
  • Website: https://www.wajax.com

Number of Employees


Location

  • Wajax Corporation
  • 2250 Argentia Road
  • Mississauga
  • Ontario
  • L5N 6A5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WJXTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 1996
WJXF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 1996
5WJDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1996

Biography

Wajax Corporation, an integrated distribution company, provides sales, parts, and services to construction, forestry, mining, industrial/commercial, oil sands, transportation, metal processing, government, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 21:40
End of Day Share Price2020/08/11 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.