DB:5WJ

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.1%

DB:5WJ

-4.8%

DE Trade Distributors

-1.5%

DE Market


1 Year Return

-45.4%

DB:5WJ

-21.6%

DE Trade Distributors

-10.4%

DE Market

5WJ underperformed the Trade Distributors industry which returned -21.6% over the past year.

5WJ underperformed the Market in Germany which returned -10.5% over the past year.


Share holder returns

5WJIndustryMarket
7 Day-2.1%-4.8%-1.5%
30 Day-2.5%-3.7%-4.3%
90 Day-3.9%-9.4%-5.9%
1 Year-42.2%-45.4%-19.2%-21.6%-7.6%-10.4%
3 Year14.4%-1.5%-11.8%-18.2%9.4%0.03%
5 Year-48.6%-60.6%6.2%-5.3%25.6%8.1%

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 based on future cash flows and its price relative to the stock market?

34%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

Wajax's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Wajax is good value based on earnings compared to the DE Trade Distributors industry average.

Wajax is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Wajax is good value based on assets compared to the DE Trade Distributors industry average.


Next Steps

Future Growth

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

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Wajax's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

Wajax's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Wajax's revenue growth is positive but not above the Germany market average.

Wajax's earnings growth is positive but not above the Germany market average.

Wajax's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Wajax is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Wajax performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Wajax's year on year earnings growth rate has been positive over the past 5 years.

Wajax's 1-year earnings growth is less than its 5-year average (3.1% vs 4.1%)

Wajax's earnings growth has not exceeded the DE Trade Distributors industry average in the past year (3.1% vs 32.1%).


Return on Equity

Wajax has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Wajax used its assets more efficiently than the DE Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Wajax has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Wajax's financial position?


Financial Position Analysis

Wajax is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

Wajax's level of debt (88.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (83.7% vs 88.6% today).

Debt is not well covered by operating cash flow (0.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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


Next Steps

Dividend

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

6.60%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Wajax's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.59%).

Wajax's dividend is above the markets top 25% of dividend payers in Germany (4.29%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


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 Wajax's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

A. Foote (58yo)

7.4yrs

Tenure

CA$3,102,239

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

A.'s remuneration is higher than average for companies of similar size in Germany.

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


Management Age and Tenure

3.6yrs

Average Tenure

The tenure for the Wajax management team is about average.


Board Age and Tenure

7.4yrs

Average Tenure

62yo

Average Age

The tenure for the Wajax board of directors is about average.


Insider Trading

More shares have been bought than sold by Wajax individual insiders in the past 3 months.


Recent Insider Transactions

Buy€8,25913 Aug 19
Donna Baratto
EntityIndividual
Shares800
Max Price€10.32
Buy€51,85812 Aug 19
Thomas Alford
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max Price€10.40
Buy€63,56812 Aug 19
Alexander Taylor
EntityIndividual
Role
Member of the Board of Directors
Shares6,000
Max Price€10.63
Buy€50,94327 Jun 19
Robert Dexter
EntityIndividual
Role
Chairman of the Board
Shares5,000
Max Price€10.19
Buy€49,99706 Jun 19
Robert Dexter
EntityIndividual
Role
Chairman of the Board
Shares5,000
Max Price€10.00
Buy€20,99504 Jun 19
Steven Deck
EntityIndividual
Role
Senior Vice President of Business Development
Shares2,057
Max Price€10.21
Buy€10,99802 Apr 19
Andrew Tam
EntityIndividual
Role
General Counsel & Corporate Secretary
Shares1,000
Max Price€11.00
Buy€54,15728 Mar 19
Thomas Alford
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max Price€10.83
Buy€107,45228 Mar 19
A. Foote
EntityIndividual
Role
President
Member of the Board of Directors
Shares10,000
Max Price€10.75
Buy€108,74328 Mar 19
Robert Dexter
EntityIndividual
Role
Chairman of the Board
Shares10,000
Max Price€10.87

Ownership Breakdown


Management Team

  • A. Foote (58yo)

    President

    • Tenure: 7.4yrs
    • Compensation: CA$3.10m
  • Tom Plain

    Senior Vice President of Service Operations

    • Tenure: 3.6yrs
    • Compensation: CA$949.06k
  • Steve Deck

    Senior Vice President of Business Development

    • Tenure: 5.4yrs
    • Compensation: CA$1.05m
  • Andrew Tam

    General Counsel & Corporate Secretary

    • Tenure: 8.6yrs
  • Stuart Auld

    CFO & Senior VP of Finance

    • Tenure: 0.3yrs
    • Compensation: CA$865.72k
  • Trevor Carson

    VP of Financial Planning & Risk Management & Treasurer

    • Tenure: 2.6yrs
  • Tania Casadinho

    VP of Finance & Controller

  • Irene Stretton

    Vice President of Human Resources

    • Tenure: 0.3yrs

Board Members

  • Sandy Taylor (61yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: CA$118.50k
  • Tom Alford (61yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: CA$118.50k
  • A. Foote (58yo)

    President

    • Tenure: 7.4yrs
    • Compensation: CA$3.10m
  • Doug Carty (62yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: CA$135.50k
  • Anne Bélec (56yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: CA$18.44k
  • John Eby (67yo)

    Independent Director

    • Tenure: 13.0yrs
    • Compensation: CA$124.00k
  • H. MacNeill

    Honorary Director

  • Rob Dexter (67yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: CA$225.00k
  • Ed Barrett (65yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: CA$117.00k
  • Sylvia Chrominska (68yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$127.50k

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$303.054m
  • Listing Market Cap: CA$205.500m
  • Shares outstanding: 20.00m
  • Website: Click here

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 transportation, forestry, industrial and commercial, construction, oil sands, mining, metal processing, governm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 21:47
End of Day Share Price2019/08/16 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.