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Savaria (TSE:SIS)
TSX:SIS
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Savaria
(TSX:SIS)
76Outperform
Savaria (SIS) vs. S&P 500 (SPY)
Market Cap
C$1.12B
Dividend Yield3.38%
Average Volume (3M)123.84K
Price to Earnings (P/E)23.0
Beta (1Y)0.90
Revenue Growth3.68%
EPS Growth19.78%
CountryCA
Employees2,531
SectorIndustrials
Sector Strength63
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.68
Shares Outstanding71,402,504
10 Day Avg. Volume103,540
30 Day Avg. Volume123,838
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)N/A
Price to Sales (P/S)1.36
Price to Cash Flow (P/CF)8.60
P/FCF Ratio9.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$23.86Price Target Upside51.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Savaria Business Overview & Revenue Model
Company DescriptionSavaria Corporation (SIS) is a leading company in the accessibility industry, specializing in the design, manufacture, and distribution of equipment for people with mobility challenges. The company primarily operates in three segments: Accessibility, Patient Handling, and Adapted Vehicles. Its core products include home elevators, commercial lifts, stairlifts, wheelchair lifts, and ceiling lifts, as well as various types of adapted vehicles for personal and commercial use.
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 exhibits robust financial health with consistent revenue and profit growth, efficient cost management, and strong cash flow generation. The balance sheet reflects moderate leverage and strong equity position, supporting long-term stability. Overall, the company is well-positioned for continued growth and financial resilience.Income Statement
Savaria has demonstrated solid revenue growth with a 3.68% increase from 2023 to 2024. The gross profit margin improved slightly, indicating efficient cost management. Net profit margin also increased to 5.59%, showcasing enhanced profitability. EBIT and EBITDA margins have shown consistent growth, reflecting strong operational performance.82
Very Positive
Balance Sheet
The company maintains a stable financial position with a debt-to-equity ratio of 0.51, indicating moderate leverage. ROE has improved to 8.43%, highlighting effective utilization of equity. The equity ratio stands at 51.62%, reflecting solid capitalization and financial stability.78
Positive
Cash Flow
Savaria's free cash flow grew significantly by 67.27% from 2023 to 2024, showcasing strong cash generation capabilities. The operating cash flow to net income ratio of 2.48 indicates robust cash flow relative to earnings. The free cash flow to net income ratio is 2.06, further underscoring cash generation efficiency.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 867.76M | 836.95M | 789.09M | 660.98M | 354.50M | Gross Profit |
| 321.71M | 286.02M | 254.37M | 215.54M | 122.13M | EBIT |
| 84.14M | 72.15M | 63.94M | 35.88M | 39.87M | EBITDA |
| 136.58M | 123.82M | 114.14M | 82.70M | 55.98M | Net Income Common Stockholders |
| 48.51M | 37.84M | 35.31M | 11.54M | 26.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 35.24M | 54.27M | 44.73M | 63.49M | 54.18M | Total Assets |
| 1.11B | 1.10B | 1.11B | 1.11B | 453.31M | Total Debt |
| 292.62M | 319.38M | 410.07M | 432.34M | 78.05M | Net Debt |
| 257.38M | 265.31M | 365.35M | 368.85M | 23.87M | Total Liabilities |
| 538.94M | 552.57M | 656.99M | 672.32M | 173.58M | Stockholders Equity |
| 575.27M | 549.00M | 452.97M | 434.60M | 279.73M |
| Cash Flow | Free Cash Flow | |||
| 99.95M | 59.76M | 70.22M | 41.56M | 42.33M | Operating Cash Flow |
| 120.10M | 78.62M | 90.74M | 57.28M | 49.31M | Investing Cash Flow |
| -20.63M | -6.36M | -21.58M | -396.44M | -7.38M | Financing Cash Flow |
| -118.00M | -63.11M | -83.25M | 351.80M | -27.32M |
Savaria Technical Analysis
Negative
15.70
Price Trends
17.47
Negative
18.97
Negative
19.52
Negative
Market Momentum
-0.37
Negative
41.02
Neutral
15.68
Positive
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 15.7 is below the 20-day moving average (MA) of 16.50, below the 50-day MA of 17.47, and below the 200-day MA of 19.52, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 15.68 is Positive, 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$1.12B | 23.01 | 8.63% | 3.38% | 3.68% | 19.78% | |
73 Outperform | C$1.07B | 9.54 | 11.27% | 6.56% | -0.27% | -15.99% | |
68 Neutral | $9.01B | 15.60 | 16.05% | 2.15% | 13.32% | -13.75% | |
63 Neutral | C$92.50B | 92.37 | 30.90% | 0.13% | 21.56% | 31.90% | |
62 Neutral | $7.26B | 12.38 | 3.01% | 3.40% | 3.58% | -14.13% | |
61 Neutral | $29.85B | 181.20 | 1.80% | 12.63% | -1.07% | -92.15% |
* Industrials Sector Average
Performance Comparison
TSE:SIS
Savaria
15.70
-0.44
-2.73%
TSE:TFII
TFI International
113.02
-101.76
-47.38%
TSE:BCE
BCE
32.38
-7.92
-19.65%
TSE:CSU
Constellation Software
4,365.01
731.77
20.14%
TSE:MTL
Mullen Group Ltd.
12.19
-1.98
-13.97%
Savaria Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -7.32% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance in the patient care segment and improvements in financial metrics. However, the introduction of tariffs presents a significant challenge, prompting a revision in future guidance. While there is optimism about overcoming these hurdles, the immediate uncertainty has brought caution.Highlights
Record EBITDA in Patient Care Segment
The patient care segment achieved its best quarter ever with an EBITDA of 23.1%, marking a 20.6% organic growth due to increased sales in medical bed frames, mattresses, and ceiling lift packages.
Improved Financial Metrics
Savaria reported a consolidated gross margin increase to 37.7%, up 340 basis points from the previous year, and an adjusted EBITDA margin of 19.2% for the quarter.
Strong Cash Flow and Debt Management
The company reduced its leverage ratio to 1.63, with a significant improvement in free cash flow, which was 43.2 million better than 2023.
Expansion in Product Offerings
The launch of the Luma elevator, a through-the-floor lift, is expected to drive future organic growth.
Lowlights
Tariff Challenges
New tariffs between Canada and the US are expected to impact short-term results, with potential challenges in mitigating these through localized production and price adjustments.
Accessibility Segment Contraction
The accessibility segment saw a 1.9% contraction in Q4, driven by a 7.8% decline in Europe and flat growth in North America.
Revised Guidance for 2025
Due to uncertainties around tariffs, the revenue guidance is revised to 925 million with an adjusted EBITDA margin between 17% and 20%.
Company Guidance
During Savaria Corporation's Q4 2024 conference call, held on March 6, 2025, the company provided guidance for the 2025 fiscal year. Savaria expects approximately $925 million in revenues with an adjusted EBITDA margin between 17% and 20%, acknowledging the uncertainties due to recent tariffs. The company reported a strong financial performance in 2024, with a consolidated gross margin of 37.1%, up 340 basis points from the previous year, and an adjusted EBITDA margin reaching 18.6% for the full year. Savaria highlighted significant growth in the patient care segment, which achieved organic growth of 20.6% and an EBITDA margin of 23.1% in Q4. The accessibility segment also showed positive signs, with North America achieving an 8.4% growth throughout the year. The company successfully reduced its leverage ratio to 1.63, with an available fund of $242 million, positioning it well for potential acquisitions or investments. Despite challenges posed by tariffs, Savaria remains optimistic about organic growth, with new product launches like the Luma elevator, and continues to focus on improving operational efficiency and cost management under its Savaria One program.Savaria Corporate Events
Dividends
Savaria Corporation Announces April Dividend
Positive
Mar 21, 2025
Savaria Corporation has announced a monthly dividend of 4.5 cents per common share, payable on April 11, 2025, to shareholders of record as of March 31, 2025. This declaration aligns with the company’s dividend policy and reflects its commitment to providing returns to its shareholders, potentially enhancing its attractiveness to investors and reinforcing its stable financial position in the accessibility industry.
Business Operations and StrategyFinancial Disclosures
Savaria Corporation Reports Strong Fiscal 2024 Results with Increased Revenue and Profitability
Positive
Mar 5, 2025
Savaria Corporation reported its fiscal 2024 results, showcasing a revenue increase to $867.8 million, driven by organic growth and favorable foreign exchange impacts. The company achieved a gross profit of $321.7 million and an operating income of $84.1 million, reflecting improved profitability. Notably, the adjusted EBITDA rose by 24% to $161.2 million, with margins improving significantly. These results highlight Savaria’s strong financial performance and strategic positioning in the accessibility industry, despite divestitures and regional market contractions.
Financial Disclosures
Savaria to Release Q4 2024 Financial Results
Neutral
Feb 24, 2025
Savaria Corporation announced it will release its fourth quarter 2024 financial results on March 5, 2025, followed by an investor conference call on March 6, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and future prospects, potentially impacting its market positioning and investor confidence.
Dividends
Savaria Corporation Declares Monthly Dividend
Positive
Feb 20, 2025
Savaria Corporation announced a dividend of 4.5 cents per common share, payable on March 10, 2025, aligning with its monthly dividend policy. This declaration reflects the company’s ongoing commitment to providing shareholder value and highlights its strong positioning within the accessibility industry.
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.