Savaria (TSE:SIS)
TSX:SIS
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Savaria
(TSX:SIS)
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Rating:79Outperform
Price Target:
C$30.00
▲(8.15% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by strong financial performance (cash generation and deleveraging) and a very constructive earnings call highlighting record profitability and continued margin-expansion initiatives. Technicals are supportive with a clear uptrend, while valuation is reasonable but not a standout bargain.
Positive Factors
Cash generation & deleveraging
Consistent positive operating cash flow and materially higher free cash flow through 2025 have funded meaningful debt reduction and equity strengthening, improving financial flexibility to reinvest, pursue tuck-in M&A, and sustain operations through cycles without reliance on external funding.
Negative Factors
Decelerating top-line growth
Top-line growth has slowed to low-single digits, signaling a maturing market position and the need for new demand drivers or successful M&A to restore faster expansion. Persistent slow growth raises dependence on margin gains and cost programs to drive earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & deleveraging
Consistent positive operating cash flow and materially higher free cash flow through 2025 have funded meaningful debt reduction and equity strengthening, improving financial flexibility to reinvest, pursue tuck-in M&A, and sustain operations through cycles without reliance on external funding.
Read all positive factors
Savaria (SIS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.99B
Dividend Yield2.35%
Average Volume (3M)92.56K
Price to Earnings (P/E)19.9
Beta (1Y)0.76
Revenue Growth3.93%
EPS Growth33.44%
CountryCA
Employees2,531
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.37
Shares Outstanding71,726,660
10 Day Avg. Volume108,400
30 Day Avg. Volume92,560
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)2.54
Price to Sales (P/S)1.78
P/FCF Ratio14.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$30.50Price Target Upside9.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.39
Revenue Forecast (FY)C$967.70M
Savaria Business Overview & Revenue Model
Company Description
Savaria Corporation provides accessibility solutions for the elderly and physically challenged people in Canada, the United States, Europe, and internationally. The company operates in three segments: Accessibility, Patient Care, and Adapted Vehic...
How the Company Makes Money
Savaria generates revenue primarily through the sale and installation of its accessibility products such as stairlifts, home elevators, and wheelchair lifts. The company also offers maintenance and repair services for its products, providing a rec...
Savaria Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive momentum: record quarterly and annual profitability, double-digit segment improvements, meaningful deleveraging, robust cash flow, and structural gains from the Savaria One transformation. Management provided clear plans for growth (product introductions, European rebranding, dealer tuck-ins, Greenville expansion) and signaled ample M&A capacity. Headwinds are present but manageable — chiefly FX volatility, transitional Europe dynamics, some one‑off strategic costs, and a near-term CapEx spike for Greenville. Overall, the positives (record results, sustainable margin improvement, cash/debt progress and clear strategic roadmap) materially outweigh the limited and identifiable lowlights.Positive Updates
Record Quarterly and Full-Year Profitability
Adjusted EBITDA of $51.3M in Q4 2025 (highest quarter ever), representing ~20% growth YoY and an adjusted EBITDA margin of 21.2% (up 200 bps vs Q4 2024). Full-year sales of $913M with adjusted EBITDA of $186.2M and a 20.4% margin (company bests and above the 20% target).
Negative Updates
Europe Top-Line Pressure and Prior Two-Year Lag
Europe experienced constrained top-line growth over the last ~2 years due to divestments, re-pricing/stricter partnership terms that ceded some business to competitors, and stop-and-go government subsidy programs (e.g., France, Italy). Organic growth in Europe was described as low single digits in the quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Full-Year Profitability
Adjusted EBITDA of $51.3M in Q4 2025 (highest quarter ever), representing ~20% growth YoY and an adjusted EBITDA margin of 21.2% (up 200 bps vs Q4 2024). Full-year sales of $913M with adjusted EBITDA of $186.2M and a 20.4% margin (company bests and above the 20% target).
Read all positive updates
Company Guidance
Management deferred specific yearly guidance until its Investor Day on April 14 when it will unveil 5‑year targets, but gave directional metrics for 2026–27: CapEx is expected to be ~2.5–3.0% of sales in 2026 (back to ~2–2.5% in 2027) with the Greenville U.S. expansion coming online in Q4/Oct 2026; an expected effective tax rate of ~26–26.5%; no share buybacks and a stable dividend policy; a capital priority of deleveraging and M&A (net debt fell ~$71M YoY to a 1.03 leverage ratio, $75.2M of debt repaid in 2025, ~$312M liquidity available, and management says it can invest roughly $200M over the next few years while keeping net debt/EBITDA below 2). They signalled continued margin expansion driven by Savaria One and operating leverage (Q4 adjusted EBITDA $51.3M / 21.2%; FY adjusted EBITDA $186.2M / 20.4%), plan ~100 new Savaria One initiatives in 2026 after 160+ in 2025, and will modestly elevate 2026 CapEx (one‑off Greenville spend) while roughly half of normal CapEx continues to support R&D (62 people).Savaria Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
77
Positive
Cash Flow
81
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 913.53M | 867.76M | 836.95M | 789.09M | 660.98M |
| Gross Profit | 321.22M | 321.71M | 286.02M | 254.37M | 215.54M |
| EBITDA | 164.55M | 136.58M | 123.82M | 114.14M | 82.70M |
| Net Income | 68.77M | 48.51M | 37.84M | 35.31M | 11.54M |
Balance Sheet | |||||
| Total Assets | 1.10B | 1.11B | 1.10B | 1.11B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 18.62M | 35.24M | 54.27M | 45.24M | 63.49M |
| Total Debt | 205.91M | 292.62M | 319.38M | 410.07M | 432.34M |
| Total Liabilities | 458.10M | 538.94M | 552.57M | 656.99M | 672.32M |
| Stockholders Equity | 640.83M | 575.27M | 549.00M | 452.97M | 434.60M |
Cash Flow | |||||
| Free Cash Flow | 115.53M | 99.95M | 59.76M | 70.22M | 41.56M |
| Operating Cash Flow | 128.17M | 120.10M | 78.62M | 90.74M | 57.28M |
| Investing Cash Flow | -20.95M | -20.63M | -6.36M | -21.58M | -396.44M |
| Financing Cash Flow | -125.85M | -118.00M | -63.11M | -83.25M | 351.80M |
Savaria Technical Analysis
Positive
27.74
Price Trends
25.30
Positive
23.88
Positive
22.08
Positive
Market Momentum
0.51
Negative
68.52
Neutral
76.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SIS, the sentiment is Positive. The current price of 27.74 is above the 20-day moving average (MA) of 25.83, above the 50-day MA of 25.30, and above the 200-day MA of 22.08, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 76.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SIS.
Savaria Peers Comparison
UnderperformOutperform
Sector (63)
TSE:SIS
Savaria
27.74
12.69
84.38%
TSE:REKO
Reko International
3.86
1.02
35.92%
TSE:VLN
Velan Inc. SV
15.70
1.44
10.09%
Savaria Corporate Events
Business Operations and StrategyFinancial Disclosures
Savaria Delivers Record 2025 Results and Sharply Improves Margins
Positive
Mar 5, 2026
Savaria reported strong results for the fourth quarter and full year 2025, driven by broad-based growth in its Accessibility and Patient Care segments and margin expansion from its two-year “Savaria One” transformation program. Revenue...
Financial Disclosures
Savaria Sets March 4 Release Date for Q4 2025 Results
Neutral
Feb 23, 2026
Savaria Corporation announced it will publish its fourth-quarter 2025 financial results after markets close on March 4, 2026, followed by an investor conference call and webcast the morning of March 5. The scheduled disclosure gives investors and ...
Dividends
Savaria Maintains Monthly Payout With New Dividend Declaration
Positive
Feb 20, 2026
Savaria Corporation has declared a monthly dividend of 4.67 cents per common share, payable on March 10, 2026, to shareholders of record as of February 27, 2026. The announcement underscores the company’s continued commitment to returning ca...
Business Operations and StrategyM&A Transactions
Savaria Buys Texas Home Elevator Dealer to Boost U.S. Growth
Positive
Feb 9, 2026
Savaria Corporation has acquired substantially all the assets of Baxter Residential Elevators, a long-time dealer and installer of home elevators and lifts in the Dallas-Fort Worth area, which generated about US$4 million in revenue in 2025. The a...
Dividends
Savaria Maintains Payout with January Monthly Dividend Declaration
Positive
Jan 23, 2026
Savaria Corporation has declared a monthly dividend of 4.67 cents per common share, payable on February 10, 2026 to shareholders of record as of January 30, 2026, maintaining its regular dividend policy and signaling continued commitment to return...
Business Operations and Strategy
Savaria to Showcase Growth Strategy at April 2026 Investor Day
Positive
Jan 14, 2026
Savaria Corporation will host an Investor Day in the Greater Toronto Area on April 14, 2026, featuring management presentations and a tour of its Brampton manufacturing facility. The event will provide updates on the Savaria One initiative and lon...
Dividends
Savaria Maintains Payout with Declaration of Monthly Dividend
Positive
Dec 19, 2025
Savaria Corporation, the Canadian-based accessibility solutions provider listed on the TSX, has declared a monthly dividend of 4.67 cents per common share, payable on January 9, 2026 to shareholders of record as of December 31, 2025, in line with ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.