Education
About Us
Working with TipRanks
Follow Us
Savaria (TSE:SIS)
TSX:SIS
Top Page
Savaria
(TSX:SIS)73Outperform
Savaria (SIS) vs. S&P 500 (SPY)
Market Cap
C$1.29B
Dividend Yield3.01%
Average Volume (3M)143.99K
Price to Earnings (P/E)27.9
Beta (1Y)0.87
Revenue Growth3.49%
EPS Growth9.85%
CountryCA
Employees2,450
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)0.65
Shares Outstanding71,402,504
10 Day Avg. Volume102,297
30 Day Avg. Volume143,986
Financial Highlights & Ratios
PEG Ratio2.83
Price to Book (P/B)N/A
Price to Sales (P/S)1.44
Price to Cash Flow (P/CF)8.70
P/FCF Ratio9.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$25.00Price Target Upside45.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Savaria Business Overview & Revenue Model
Company DescriptionSavaria Corp designs, engineers, and manufactures products for personal mobility. Its products include home elevators, wheelchair lifts, commercial elevators, ceiling lifts, stair lifts, and van conversions. The company's operating segments are the Accessibility, the Adapted Vehicles and the Patient Handling divisions. The Accessibility segment deals with manufacturing, designing, installing and distributing elevators, platform lifts and stairlifts for people with mobility challenges.The Adapted Vehicle segment adapts vans to be wheelchair accessible for people with mobility challenges.The Patient Handling segment includes the manufacturing and distribution of a comprehensive line of therapeutic support surfaces and other pressure management products for the medical market.
How the Company Makes MoneySavaria Corporation generates revenue through the sale of its accessibility products and solutions. The company earns money primarily by manufacturing and selling a wide range of mobility equipment, including home elevators, stairlifts, and wheelchair lifts, to both residential and commercial customers. Additionally, Savaria has a strong presence in the patient handling market, offering products like ceiling lifts and slings, which are sold to healthcare facilities. The company also generates revenue from its adapted vehicles segment by providing customized vehicles for people with disabilities. Savaria's revenue streams are bolstered by a network of dealers and distributors, strategic partnerships, and a focus on expanding its market presence both domestically and internationally.
Savaria Financial Statement Overview
Summary
Savaria's financial performance is robust, with steady revenue growth, improved profit margins, and strong cash generation. The income statement shows a rise in both gross and net profit margins, the balance sheet indicates a stable financial position with manageable debt levels, and the cash flow statement reflects efficient cash conversion and operational efficiency.Income Statement
Savaria's income statement shows robust growth and profitability. The TTM (Trailing-Twelve-Months) revenue grew by 2.9% compared to the previous year, indicating steady expansion. The gross profit margin improved to 36.2%, and the net profit margin increased to 5.3%, reflecting efficient cost management and strong bottom-line performance. The EBIT margin of 9.5% and EBITDA margin of 15.4% highlight solid operational efficiency. Overall, the income statement reflects strong financial health with positive growth trends and profitability metrics.85
Very Positive
Balance Sheet
The balance sheet of Savaria demonstrates a stable financial position with a moderate debt-to-equity ratio of 0.54, indicating manageable leverage. The return on equity (ROE) is 7.98%, suggesting effective use of equity to generate profits. The equity ratio remains healthy at 51.1%, showcasing strong equity financing. Despite these strengths, there is potential risk from total liabilities, which represent about 48.9% of total assets. Overall, Savaria maintains a balanced financial structure with manageable debt levels and solid equity backing.78
Positive
Cash Flow
Savaria's cash flow statement highlights strong cash generation capabilities. The free cash flow growth rate is an impressive 51.7%, indicating enhanced operational efficiency and capital allocation. The operating cash flow to net income ratio is 2.40, demonstrating robust cash flow generation relative to earnings. The free cash flow to net income ratio of 1.97 underscores efficient conversion of earnings into cash. These metrics suggest a strong capacity to fund operations and investments internally, contributing to financial flexibility and stability.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 861.26M | 836.95M | 789.09M | 660.98M | 354.50M | 374.34M | Gross Profit |
| 311.81M | 286.02M | 254.37M | 215.54M | 122.13M | 125.31M | EBIT |
| 81.54M | 72.15M | 63.94M | 35.88M | 39.87M | 36.58M | EBITDA |
| 133.05M | 123.82M | 114.14M | 82.70M | 55.98M | 51.22M | Net Income Common Stockholders |
| 45.99M | 37.84M | 35.31M | 11.54M | 26.46M | 25.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 54.27M | 54.27M | 44.73M | 63.49M | 54.18M | 39.70M | Total Assets |
| 1.10B | 1.10B | 1.11B | 1.11B | 453.31M | 439.04M | Total Debt |
| 319.38M | 319.38M | 410.07M | 432.34M | 78.05M | 79.15M | Net Debt |
| 265.31M | 265.31M | 365.35M | 368.85M | 23.87M | 39.46M | Total Liabilities |
| 552.57M | 552.57M | 656.99M | 672.32M | 173.58M | 168.98M | Stockholders Equity |
| 549.00M | 549.00M | 452.97M | 434.60M | 279.73M | 270.06M |
| Cash Flow | Free Cash Flow | ||||
| 90.65M | 59.76M | 70.22M | 41.56M | 42.33M | 20.70M | Operating Cash Flow |
| 110.17M | 78.62M | 90.74M | 57.28M | 49.31M | 30.31M | Investing Cash Flow |
| -19.90M | -6.36M | -21.58M | -396.44M | -7.38M | 6.51M | Financing Cash Flow |
| -79.61M | -63.11M | -83.25M | 351.80M | -27.32M | -7.78M |
Savaria Technical Analysis
Negative
17.15
Price Trends
18.97
Negative
20.40
Negative
19.67
Negative
Market Momentum
-0.40
Positive
27.87
Positive
24.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SIS, the sentiment is Negative. The current price of 17.15 is below the 20-day moving average (MA) of 17.98, below the 50-day MA of 18.97, and below the 200-day MA of 19.67, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 27.87 is Positive, neither overbought nor oversold. The STOCH value of 24.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SIS.
Savaria Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$103.15B | 119.28 | 23.93% | 0.11% | 23.24% | 21.95% | |
73 Outperform | C$1.29B | 27.88 | 7.98% | 3.01% | 3.49% | 9.85% | |
66 Neutral | C$1.15B | 10.30 | 11.04% | 5.91% | -0.27% | -15.99% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
TSE:SIS
Savaria
17.15
0.93
5.73%
BCE
BCE
23.61
-9.16
-27.95%
TFII
TFI International
81.88
-64.33
-44.00%
TSE:CSQ
Canamex Resources
0.04
0.00
0.00%
TSE:CSU
Constellation Software
4,867.66
1,169.70
31.63%
TSE:MTL
Mullen Group Ltd.
12.96
-0.97
-6.96%
Savaria Earnings Call Summary
Earnings Call Date: Nov 6, 2024 | % Change Since: -24.18% | Next Earnings Date: Mar 5, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in North America and improved financial metrics, but faced challenges with European revenue decline and a flat Patient Care segment. Overall, the positive financial improvements and strategic initiatives indicate a positive outlook.Highlights
Record EBITDA Performance
For the first time, reached 19.5% EBITDA, slightly better than Q2 and the best quarter so far, indicating strong traction on Savaria One transformation.
North America Revenue Growth
Reported 8% revenue growth in North America for Q3, with the year-to-date growth at 11.3%, driven by strong demand in the residential sector.
Improved Financial Metrics
Cash from operating activities increased liquidity by $35.8 million, allowing for $26 million debt repayment and increasing funds available under the credit facility by $24 million.
Strong Gross Margin and Profitability
Achieved gross profit of $79.1 million and a gross margin of 37%, up from $72.6 million and 34.5% the previous year, due to improved pricing and lower material costs.
Continued Deleveraging
Net debt-to-EBITDA ratio decreased to 1.69 from 2.07 at year-end, showcasing a strong financial position for future acquisitions.
Lowlights
European Revenue Decline
Revenue in Europe contracted by 6.6% in Q3, although EBITDA margins improved from previous levels.
Flat Patient Care Segment
Patient Care revenues were stable compared to last year with project delays impacting growth; however, a strong backlog is expected to drive future growth.
Challenges in Pricing and Market Conditions
Faced challenges in pricing discipline and competitive market conditions, particularly in Europe, affecting potential margin improvements.
Company Guidance
During Savaria Corporation's Q3 2024 earnings call, the management expressed pride in the company's performance, highlighting an EBITDA margin of 19.5%, the highest achieved so far, with aspirations to reach 20% by 2025. The Accessibility segment boasted a 21.3% EBITDA margin, while Patient Care stood at 17.4%, slightly under the 20% target. North American sales grew by 8% in the quarter, contributing to an 11.3% year-to-date increase, whereas European sales declined by 6.6%, although EBITDA margins in Europe improved from 10-12% to 15.6%. Cash from operating activities increased liquidity by $35.8 million, and the net debt-to-EBITDA ratio improved to 1.69. Savaria is focusing on achieving its 2025 targets of $1 billion in revenue and a 20% adjusted EBITDA margin, with plans to enhance sales growth through new products and strategic acquisitions.Savaria Corporate Events
Savaria Announces Monthly Dividend for Shareholders
Dec 20, 2024
Savaria Corporation has announced a monthly dividend of 4.5 cents per share, payable on January 10, 2025, highlighting its commitment to providing value to shareholders. As a global leader in the accessibility industry, Savaria continues to offer comprehensive solutions for increased mobility and independence.
Savaria Reports Strong Q3 Results and Growth
Nov 6, 2024
Savaria Corporation has reported a solid performance in the third quarter of 2024, driven by a 1.7% revenue increase and a significant 21.0% rise in adjusted EBITDA. The company continues to strengthen its financial position with improved margins and reduced debt, bolstering its investment and growth potential.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.