SIS.TO  Savaria Cp

Exchange

TSX

Sector

Diversified Industries

Industry

Market Cap.

657.49M

Vuru Grade

59.37/100

Current Price

$17.40
+0.11 (+0.64%)

Growth Price

$6.85
Overvalued by 60.66%

Stability Price

$2.96
Overvalued by 82.98%

Company Metrics

  • P/E 48.47
  • P/S 5.24
  • P/B 7.14
  • EPS 0.36
  • Cash ROIC 12.56%
  • Cash Ratio 1.93
  • Dividend 0.26 / 1.5%
  • Avg. Vol. 98,186.00
  • Shares 37.79M
  • Market Cap. 657.49M

Company Description

Savaria Corporation designs, manufactures, installs, and distributes accessibility equipment for people with mobility challenges and elevators for residential and commercial use in the United States, Canada, and internationally. Its products include residential and commercial elevators, vertical and incline platform lifts, stair chairs, powered stair climber, and automatic doors and operators. The... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Savaria: 5 Reasons To Buy
Seeking Alpha - May 12, 2017
It also operates a network of franchisees and corporate stores through which new and recycled accessibility equipment is sold and, in certain locations, vehicle conversions are performed.
Savaria Corporation to acquire Span-America Medical Systems, Inc.
Marketwired (press release) - May 1, 2017
LAVAL, QUEBEC--(Marketwired - May 1, 2017) - Savaria Corporation ("Savaria" or the "Corporation") (TSX:SIS) announced today that it has entered into an agreement (the "Acquisition Agreement") with Span-America Medical Systems, Inc. ("Span-America") ...
Span-America (SPAN) to be Acquired by Savaria Corporation for $29/Share - StreetInsider.com
South Carolina's Span-America Medical being sold to Canadian firm - Charleston Post Courier
BRIEF-Savaria Corporation to acquire Span-America Medical Systems Inc.
Reuters - May 1, 2017
WASHINGTON, May 22 The Trump administration's budget proposal would convert some of the United States' foreign military grants to loans, part of a larger effort to slash spending on diplomacy, aid and programs abroad by more than 29 percent, the White ...
Savaria is a leader in the accessibility industry. Savaria designs, builds ...
Seeking Alpha - Jan 25, 2016
Savaria intends to grow through organic growth initiatives such as adding franchises and introducing new products, and possibly through inorganic acquisitions (as suggested by management).
Bourassa Family Announces Secondary Offering of Common Shares of Savaria ...
Marketwired (press release) - Nov 10, 2016
Marcel Bourassa and Jean-Marie Bourassa, through their wholly owned subsidiary 9264-4582 Qu├ębec Inc. (the "Bourassa Family"), announce that they have entered into an agreement with National Bank Financial Inc., Cormark Securities Inc. and Laurentian ...
Savaria Announces Acquisition of Premier Lifts
Marketwired (press release) - Feb 1, 2017
LAVAL, QUEBEC--(Marketwired - Feb. 1, 2017) - Savaria Corporation (TSX:SIS) ("Savaria"), one of North America's leaders in the accessibility industry, today announced that it has entered into an agreement to acquire all of the assets of Premier Lifts, Inc.
Savaria's Retail Initiative Is No Longer In Stealth Mode
Seeking Alpha - Apr 14, 2016
Savaria Corp. (OTC:SISXF) is a manufacturer and retailer of accessibility equipment. Some of its products include home elevators, stair lifts, and custom vehicles.
10.939
MarketWatch - Apr 17, 2011
Savaria Corp. designs and manufactures elevators, lifts and wheelchair accessible vans for home and commercial use, as well as stair lifts and vertical and inclined platform lifts.
Savaria Corporation (SIS:CA) Rises 9.84% for May 22
Equities.com - May 22, 2017
May 22 was a positive day for Savaria Corporation (SIS:CA) as its stock finished the day having gained 9.84% to hit a price of $16.07 a share.
Savaria Announces Results for its Third Quarter of 2016 and Raises Guidance Again
Marketwired (press release) - Nov 2, 2016
Savaria Corporation (savaria.com) is one of North America's leaders in the accessibility industry. It provides accessibility solutions for the elderly and physically challenged to increase their mobility and independence.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for SIS.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate SIS.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$17.40 Current Price

$6.85 Growth Price (DCF)

Overvalued by 60.66%


Growth Rate Assumed by Market: 43.00%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$2.96 Stability Price (EPV)

Overvalued by 82.98%


Discount Rate: 15.0%

$1.24 NCA Price

Overvalued by 92.89%

$6.04 Book Price

Overvalued by 65.30%


Inconsistent Cash Return on Invested Capital over the past 5 years

SIS.TO has somewhat efficiently invested its financial resources in buildings, projects, and equipment. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

SIS.TO has created $12.56 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -6.04M 5.88M 8.18M 4.04M 15.08M
divided by
Invested Capital 32.85M 32.89M 36.64M 41.45M 48.30M
Cash ROIC -18.39% 17.88% 22.34% 9.75% 31.22%

Excellent Return on Equity over the past 5 years

Over the past 5 years, SIS.TO has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

SIS.TO has generated $16.99 of Earnings for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in December
20122013201420152016
Net Income 1.58M 5.30M 6.39M 8.94M 12.30M
divided by
Stockholders' Equity 19.22M 20.23M 36.46M 49.21M 82.99M
Return on Equity 8.21% 26.19% 17.53% 18.17% 14.82%

Excellent Business Performance over the past 10 years

SIS.TO has been able to maintain profitability in good times and bad. This could mean SIS.TO has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

SIS.TO has created positive free cash flow for 9 or more of the past 10 years.
Figures in CAD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 2.05M 731,807.00 3.72M 2.93M 3.24M -6.04M 5.88M 8.18M 4.04M 15.08M

Very Strong Balance Sheet

SIS.TO has more Cash than its Total Liabilities, resulting in $0.21 Net Cash per share. In other words, if you buy SIS.TO today, the price you're paying for shares is actually $17.19 because $0.21 of Cash is included in the current share price. This much Cash is very healthy. It can help SIS.TO sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in CAD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 4.71M 5.20M 5.78M 6.55M 4.72M 2.63M 1.97M 16.28M 29.71M 51.23M
Current Assets 25.41M 28.45M 27.64M 33.90M 30.10M 28.46M 28.90M 46.14M 61.56M 90.24M
Total Assets 38.70M 40.68M 39.89M 47.96M 42.41M 49.38M 49.01M 71.42M 95.69M 126.13M
Current Liabilities 15.02M 12.38M 9.85M 14.49M 13.73M 13.91M 14.15M 18.50M 24.53M 26.60M
Total Liabilities 16.08M 22.84M 19.10M 25.32M 22.27M 30.16M 28.78M 34.96M 46.47M 43.15M
Stockholder' Equity 22.62M 17.84M 20.79M 22.64M 20.15M 19.22M 20.23M 36.46M 49.21M 82.99M
Current Ratio 1.69 2.30 2.81 2.34 2.19 2.05 2.04 2.49 2.51 3.39
TL-to-TA 0.42 0.56 0.48 0.53 0.53 0.61 0.59 0.49 0.49 0.34

Consistent Reinvestment of Profits over the past 10 years

SIS.TO has consistently retained profits. This may put SIS.TO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, SIS.TO can greatly improve their long-term economic picture.
Figures in CAD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 5.12M 4.60M 4.29M 4.71M 4.11M 3.46M 5.50M 4.71M 7.62M 11.66M
Retained Earnings Growth - -10.29% -6.72% 9.92% -12.87% -15.64% 58.75% -14.35% 61.74% 53.02%

Highly Competitive Industry over the past 10 years

It's likely that SIS.TO is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely SIS.TO invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.00 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -323,927.00 1.55M 2.26M 2.47M 2.00M 1.58M 5.30M 6.39M 8.94M 12.30M
divided by
Revenue 57.52M 54.71M 55.17M 65.24M 65.27M 66.73M 75.74M 82.91M 95.26M 119.73M
Net Profit Margin -0.56% 2.83% 4.09% 3.79% 3.07% 2.36% 7.00% 7.71% 9.39% 10.27%

Inconsistent Gross Profit Margins over the past 10 years

SIS.TO has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$35.04 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 13.54M 12.63M 14.85M 18.58M 62.95M 18.06M 22.26M 25.32M 29.58M 40.57M
divided by
Revenue 57.52M 54.71M 55.17M 65.24M 65.27M 66.73M 75.74M 82.91M 95.26M 119.73M
Gross Margin 23.54% 23.09% 26.92% 28.49% 96.44% 27.06% 29.38% 30.54% 31.05% 33.88%

High Capital Intensity over the past 10 years

SIS.TO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

102.91% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 216,110.00 219,168.00 199,170.00 392,256.00 910,000.00 10.89M 1.09M 1.03M 8.09M 3.01M
divided by
Net Income -323,927.00 1.55M 2.26M 2.47M 2.00M 1.58M 5.30M 6.39M 8.94M 12.30M
Capital Expenditure Ratio -66.72% 14.15% 8.82% 15.85% 45.48% 690.37% 20.55% 16.10% 90.43% 24.45%

Good Dividend History over the past 10 years

SIS.TO has distributed dividends for the past 5 years. Remember, the longer a company's dividend history, the more established the company might be and the more reliable the future of the dividend probably is.
Figures in CAD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 2.36M 1.74M 824,055.00 1.87M - 2.18M 3.26M 6.35M 5.42M 7.40M
divided by
Shares Outstanding 28.37M 27.30M 25.41M 22.87M 23.25M 23.12M 23.44M 28.07M 32.45M 35.92M
Dividend Paid Per Share 0.08 0.06 0.03 0.08 - 0.09 0.14 0.22 0.17 0.20
Price at Year End 0.97 0.44 0.73 1.49 1.58 1.55 2.92 4.35 5.42 10.87
Dividend Yield 8.50% 14.35% 4.41% 5.44% - 6.02% 4.72% 5.16% 3.06% 1.88%

History of Stock Buybacks over the past 10 years

SIS.TO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in CAD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 28.37M 27.30M 25.41M 22.87M 23.25M 23.12M 23.44M 28.07M 32.45M 35.92M
Stock Bought Back - 3.93% 7.43% 11.12% -1.62% 0.56% -1.40% -16.48% -13.49% -9.66%
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