SIS.TO  Savaria Cp

Exchange

TSX

Sector

Diversified Industries

Industry

Market Cap.

375.49M

Vuru Grade

38.77/100

Current Price

$10.59
-0.27 (-2.49%)

Growth Price

$2.71
Overvalued by 74.41%

Stability Price

$2.77
Overvalued by 73.82%

Company Metrics

  • P/E 32.19
  • P/S 3.34
  • P/B 4.93
  • EPS 0.33
  • Cash ROIC 9.01%
  • Cash Ratio 1.21
  • Dividend 0.26 / 2.39 %
  • Avg. Vol. 55,158.00
  • Shares 35.46M
  • Market Cap. 375.49M

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 Corporation - Riding Strong Macroeconomic Tailwinds
Seeking Alpha - Jan 25, 2016
Savaria is a leader in the accessibility industry. Savaria designs, builds, and retails personal mobility products in the accessibility and adapted vehicles segments.
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.
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 Québec Inc. (the "Bourassa Family"), announce that they have entered into an agreement with National Bank Financial Inc., Cormark Securities Inc. and Laurentian ...
Savaria President and CFO Exercise their Warrants
Marketwired (press release) - Nov 9, 2016
LAVAL, QUEBEC--(Marketwired - Nov. 9, 2016) - Savaria Corporation (TSX:SIS) ("Savaria" or the "Corporation"), one of North America's leaders in the accessibility industry, announces that a company wholly owned by Marcel Bourassa, President and Chief ...
Stock Watch for Savaria Corporation (TSX:SIS)
Piedmont Register - Feb 9, 2017
Savaria Corporation (TSX:SIS) presently has a Piotroski F-Score of 7. Piotroski's F-Score uses nine tests based on company financial statements.
Savaria Announces Increase to Bought Deal Financing
Marketwired (press release) - May 27, 2016
Savaria Corporation (TSX:SIS) ("Savaria" or the "Company") is pleased to announce that further to its press release on May 26, 2016, the Company has agreed with a syndicate of investment dealers led by Cormark Securities Inc. and National Bank ...
Savaria Declares its Quarterly Dividend
Marketwired (press release) - Feb 3, 2017
LAVAL, QUEBEC--(Marketwired - Feb. 3, 2017) - Savaria Corporation (TSX:SIS), one of the North America's leaders in the accessibility industry, declared on February 2nd a dividend of 6.5 cents ($0.065) per common share, in accordance with its quarterly ...
Savaria Announces Agreement to Purchase Automotive Division of Shoppers Home ...
Marketwired (press release) - Apr 6, 2016
LAVAL, QUEBEC--(Marketwired - April 6, 2016) - Savaria Corporation (« Savaria ») (TSX:SIS), one of North America's leaders in the accessibility industry, today announced that Silver Cross Automotive, a wholly-owned subsidiary of Savaria, has signed a ...
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.
Aging population has investors eyeing accessibility equipment maker Savaria
The Globe and Mail - Jul 10, 2016
Investors looking to make money from seniors' desire to stay in their homes as they become less mobile are eyeing accessibility equipment maker Savaria Corp. However, analysts say the stock is getting expensive after a recent runup. Shares of Laval, Que.
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.

$10.59 Current Price

$2.71 Growth Price (DCF)

Overvalued by 74.41%


Growth Rate Assumed by Market: 60.97%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$2.77 Stability Price (EPV)

Overvalued by 73.82%


Discount Rate: 15.0%

$0.42 NCA Price

Overvalued by 96.01%

$3.74 Book Price

Overvalued by 64.67%


Poor Cash Return on Invested Capital over the past 5 years

SIS.TO has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

SIS.TO has only created $9.01 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 3.24M -6.04M 5.88M 8.18M 4.04M
divided by
Invested Capital 23.96M 32.85M 32.89M 36.64M 41.45M
Cash ROIC 13.50% -18.39% 17.88% 22.34% 9.75%

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 $16.01 of Earnings for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in December
20112012201320142015
Net Income 2.00M 1.58M 5.30M 6.39M 8.94M
divided by
Stockholders' Equity 20.15M 19.22M 20.23M 36.46M 49.21M
Return on Equity 9.93% 8.21% 26.19% 17.53% 18.17%

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
2006200720082009201020112012201320142015
Free Cash Flow 1.42M 2.05M 731,807.00 3.72M 2.93M 3.24M -6.04M 5.88M 8.18M 4.04M

Strong Balance Sheet

SIS.TO is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 6.95M 4.71M 5.20M 5.78M 6.55M 4.72M 2.63M 1.97M 16.28M 29.71M
Current Assets 29.60M 25.41M 28.45M 27.64M 33.90M 30.10M 28.46M 28.90M 46.14M 61.56M
Total Assets 40.26M 38.70M 40.68M 39.89M 47.96M 42.41M 49.38M 49.01M 71.42M 95.69M
Current Liabilities 8.89M 15.02M 12.38M 9.85M 14.49M 13.73M 13.91M 14.15M 18.50M 24.53M
Total Liabilities 13.92M 16.08M 22.84M 19.10M 25.32M 22.27M 30.16M 28.78M 34.96M 46.47M
Stockholder' Equity 26.34M 22.62M 17.84M 20.79M 22.64M 20.15M 19.22M 20.23M 36.46M 49.21M
Current Ratio 3.33 1.69 2.30 2.81 2.34 2.19 2.05 2.04 2.49 2.51
TL-to-TA 0.35 0.42 0.56 0.48 0.53 0.53 0.61 0.59 0.49 0.49

Low or No Reinvestment of Profits over the past 10 years

SIS.TO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to SIS.TO operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 8.79M 5.12M 4.60M 4.29M 4.71M 4.11M 3.46M 5.50M 4.71M 7.62M
Retained Earnings Growth - -41.74% -10.29% -6.72% 9.92% -12.87% -15.64% 58.75% -14.35% 61.74%

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 $4.29 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 1.90M -323,927.00 1.55M 2.26M 2.47M 2.00M 1.58M 5.30M 6.39M 8.94M
divided by
Revenue 59.25M 57.52M 54.71M 55.17M 65.24M 65.27M 66.73M 75.74M 82.91M 95.26M
Net Profit Margin 3.21% -0.56% 2.83% 4.09% 3.79% 3.07% 2.36% 7.00% 7.71% 9.39%

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.

$34.36 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
2006200720082009201020112012201320142015
Gross Profit 16.03M 13.54M 12.63M 14.85M 18.58M 62.95M 18.06M 22.26M 25.32M 29.58M
divided by
Revenue 59.25M 57.52M 54.71M 55.17M 65.24M 65.27M 66.73M 75.74M 82.91M 95.26M
Gross Margin 27.06% 23.54% 23.09% 26.92% 28.49% 96.44% 27.06% 29.38% 30.54% 31.05%

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.

101.59% 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
2006200720082009201020112012201320142015
Capital Expenditure 239,602.00 216,110.00 219,168.00 199,170.00 392,256.00 910,000.00 10.89M 1.09M 1.03M 8.09M
divided by
Net Income 1.90M -323,927.00 1.55M 2.26M 2.47M 2.00M 1.58M 5.30M 6.39M 8.94M
Capital Expenditure Ratio 12.58% -66.72% 14.15% 8.82% 15.85% 45.48% 690.37% 20.55% 16.10% 90.43%

Good Dividend History over the past 10 years

SIS.TO has distributed dividends for the past 4 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
2006200720082009201020112012201320142015
Dividend Paid 651,931.00 2.36M 1.74M 824,055.00 1.87M - 2.18M 3.26M 6.35M 5.42M
divided by
Shares Outstanding 29.67M 28.37M 27.30M 25.41M 22.87M 23.25M 23.12M 23.44M 28.07M 32.45M
Dividend Paid Per Share 0.02 0.08 0.06 0.03 0.08 - 0.09 0.14 0.22 0.17
Price at Year End 1.55 0.97 0.44 0.73 1.49 1.58 1.55 2.92 4.35 5.42
Dividend Yield 1.41% 8.50% 14.35% 4.41% 5.44% - 6.02% 4.72% 5.16% 3.06%

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
2006200720082009201020112012201320142015
Shares Outstanding 29.67M 28.37M 27.30M 25.41M 22.87M 23.25M 23.12M 23.44M 28.07M 32.45M
Stock Bought Back - 4.58% 3.93% 7.43% 11.12% -1.62% 0.56% -1.40% -16.48% -13.49%
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