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Savaria (TSE:SIS)
TSX:SIS
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Savaria (SIS) AI Stock Analysis

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TSE:SIS

Savaria

(TSX:SIS)

Rating:78Outperform
Price Target:
C$22.50
▲(13.92%Upside)
Savaria Corporation exhibits strong financial health with robust revenue growth and operational efficiency. Positive technical indicators and proactive management during the earnings call enhance its outlook, although high valuation and European market challenges pose some risks.

Savaria (SIS) vs. iShares MSCI Canada ETF (EWC)

Savaria Business Overview & Revenue Model

Company DescriptionSavaria 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 Vehicles. The Accessibility segment designs, manufactures, distributes, and installs accessibility products, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair platform lifts for commercial and residential applications, and accessibility and home elevators. The Patient Care segment manufactures and distributes therapeutic support surfaces and other pressure management products for the medical and medical beds, as well as offers medical equipment and solutions for the safe handling of patients. The Adapted Vehicles segment offers distributing vehicles for people with mobility challenges for personal or commercial use. The company sells its products through dealers and by direct stores to end-user customers. Savaria Corporation was founded in 1979 and is headquartered in Laval, Canada.
How the Company Makes MoneySavaria Corporation generates revenue through the sale and distribution of its diverse range of accessibility and mobility products. The company has multiple revenue streams, primarily stemming from its Accessibility segment, which includes stairlifts, home elevators, and wheelchair lifts sold to private residences and commercial establishments. The Patient Handling segment contributes to revenue through the sale of ceiling lifts and slings used in healthcare facilities to safely transport patients. Additionally, the Adapted Vehicles segment provides customized vehicles for individuals with mobility impairments. Savaria's earnings are bolstered by a strategic network of dealers and distributors worldwide, ensuring a broad market reach. The company also benefits from partnerships with healthcare facilities and government programs that support accessibility initiatives, driving sales and expanding its market presence.

Savaria Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 8.28%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in terms of financial metrics and growth, especially in North America, coupled with strategic expansions and product launches. However, challenges remain in the European market and broader economic uncertainties, particularly concerning tariffs. Despite these concerns, the company maintains a positive outlook.
Q1-2025 Updates
Positive Updates
Record First Quarter EBITDA
EBITDA grew by $6 million or about 17% to $40.6 million, setting a record for the first quarter.
Strong Revenue Growth in North America
Revenue growth of 11.8% in North America Accessibility, driven by organic growth and favorable FX rates.
Improved Gross and EBITDA Margins
Gross margin increased by 180 basis points to 37.8% and EBITDA margins increased 190 basis points to 18.5%.
Positive Cash Flow and Debt Management
Operating cash flows up 18% versus last year, with a leverage ratio reduced to 1.49 from 1.63.
Expansion and New Product Launches
Launched new products like the Luma home elevator and expanded production facilities, including a CAD 30 million investment in Greenville.
Successful Acquisition
Acquired Western Elevator, a long-term dealer in BC, Canada, with annual sales of approximately CAD 7.5 million.
Negative Updates
Weak Performance in Europe
Revenue contraction of 2.8% in Europe, attributed to tough comparables and ongoing market adjustments.
Patient Care Modest Growth
Patient Care segment only grew by 2.1% after a strong Q4 2024, with sales being project-based and described as lumpy.
Economic Uncertainty and Tariff Concerns
Guidance remains unchanged due to economic uncertainty regarding tariffs, affecting future outlook.
Company Guidance
During the first quarter of 2025, Savaria Corporation reported an impressive EBITDA margin of 18.5%, highlighting a stable transformation for the fifth consecutive quarter. The company maintained its guidance for 2025, projecting revenues of approximately $925 million with an expected adjusted EBITDA margin between 17% and 20%, despite economic uncertainties and tariff-related challenges. Revenue saw a 5.2% increase, with North America showing strong growth of 11.8%, while Europe experienced a slight decline. Savaria's debt ratio stood at 1.5%, with available funds of $254 million, positioning the company well for future investments or acquisitions. The company continued to expand its product offerings, including the introduction of the Luma home elevator, and invested CAD 30 million in expanding its Greenville facility. Additionally, the acquisition of Western Elevator in Canada was finalized, further solidifying Savaria's market presence.

Savaria Financial Statement Overview

Summary
Savaria's financial performance is robust, with consistent revenue growth and strong profit margins. The income statement, balance sheet, and cash flow analysis show solid performance, though debt levels require monitoring.
Income Statement
85
Very Positive
Savaria's income statement shows solid performance with consistent revenue growth. Revenue grew by 1.25% from the previous year to TTM, and the net profit margin improved to 5.68% in the TTM from 5.59% in the previous year. The gross profit margin stood at 37.51% in the TTM, indicating strong pricing power and cost management. EBIT and EBITDA margins also showed healthy levels at 9.98% and 15.90%, respectively, demonstrating operational efficiency.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio of 0.48, indicating manageable leverage. The equity ratio of 52.68% in the TTM suggests a well-capitalized structure. Return on equity improved to 8.44% in the TTM, highlighting effective use of equity capital. However, total debt levels, although declining, remain significant and should be monitored.
Cash Flow
80
Positive
Cash flow analysis reveals healthy cash generation with a consistent operating cash flow to net income ratio of 2.42 in the TTM, suggesting effective conversion of income to cash. Free cash flow to net income ratio stands at 2.00, indicating strong free cash flow generation. Free cash flow growth was stable, with a slight increase from the previous year, supporting capital expenditure needs and potential for shareholder returns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue867.76M836.95M789.09M660.98M354.50M
Gross Profit321.71M286.02M254.37M215.54M122.13M
EBITDA136.58M123.82M99.25M82.70M55.98M
Net Income48.51M37.84M35.31M11.54M26.46M
Balance Sheet
Total Assets1.11B1.10B1.11B1.11B453.31M
Cash, Cash Equivalents and Short-Term Investments35.24M54.27M44.73M63.49M54.18M
Total Debt292.62M319.38M410.07M432.34M78.05M
Total Liabilities538.94M552.57M656.99M672.32M173.58M
Stockholders Equity575.27M549.00M452.97M434.60M279.73M
Cash Flow
Free Cash Flow99.95M59.76M70.22M41.56M42.33M
Operating Cash Flow120.10M78.62M90.74M57.28M49.31M
Investing Cash Flow-20.63M-6.36M-21.58M-396.44M-7.38M
Financing Cash Flow-102.53M-63.11M-83.25M351.80M-27.32M

Savaria Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.75
Price Trends
50DMA
19.35
Positive
100DMA
18.09
Positive
200DMA
19.14
Positive
Market Momentum
MACD
0.19
Positive
RSI
55.01
Neutral
STOCH
46.44
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 19.75 is above the 20-day moving average (MA) of 19.70, above the 50-day MA of 19.35, and above the 200-day MA of 19.14, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 46.44 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$1.41B28.528.74%2.72%5.24%11.02%
67
Neutral
£2.85B10.574.69%213.48%2.73%-20.56%
55
Neutral
C$4.21B38.53-1.66%-16.47%-114.85%
47
Neutral
C$323.57M-26.06%0.01%-5.20%-658.62%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SIS
Savaria
19.75
1.31
7.10%
TSE:ATS
ATS Corporation
44.05
2.05
4.88%
TSE:VLN
Velan Inc. SV
15.01
8.82
142.49%

Savaria Corporate Events

Dividends
Savaria Corporation Announces Monthly Dividend for August 2025
Positive
Jul 23, 2025

Savaria Corporation has announced a monthly dividend of 4.5 cents per common share, payable on August 11, 2025, to shareholders of record as of July 31, 2025. This dividend declaration aligns with the company’s policy and reflects its stable financial performance, potentially reinforcing investor confidence and solidifying its position in the accessibility market.

The most recent analyst rating on (TSE:SIS) stock is a Buy with a C$24.00 price target. To see the full list of analyst forecasts on Savaria stock, see the TSE:SIS Stock Forecast page.

Dividends
Savaria Corporation Announces Monthly Dividend for Shareholders
Positive
Jun 20, 2025

Savaria Corporation has announced a monthly dividend of 4.5 cents per common share, payable on July 9, 2025, to shareholders of record as of June 30, 2025. This declaration aligns with Savaria’s ongoing commitment to providing shareholder value and reflects its stable financial performance in the accessibility industry.

The most recent analyst rating on (TSE:SIS) stock is a Buy with a C$24.00 price target. To see the full list of analyst forecasts on Savaria stock, see the TSE:SIS Stock Forecast page.

Dividends
Savaria Corporation Announces Monthly Dividend for Shareholders
Positive
May 22, 2025

Savaria Corporation has announced a monthly dividend of 4.5 cents per common share, payable on June 9, 2025, to shareholders of record as of May 30, 2025. This declaration aligns with the company’s dividend policy and reflects its commitment to returning value to shareholders, potentially enhancing its attractiveness to investors in the accessibility industry.

The most recent analyst rating on (TSE:SIS) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on Savaria stock, see the TSE:SIS Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Savaria Corporation Confirms Board of Directors at Annual Meeting
Neutral
May 8, 2025

Savaria Corporation announced the results of its Annual General Meeting of Shareholders, where all nominees for the board of directors were elected by a majority vote. This outcome reinforces the stability and continuity of Savaria’s leadership as it continues to focus on its mission of providing accessibility solutions globally.

M&A TransactionsBusiness Operations and Strategy
Savaria Corporation Expands West Coast Presence with Acquisition of Western Elevator Ltd.
Positive
May 8, 2025

Savaria Corporation has announced the acquisition of Western Elevator Ltd., a leading home elevator and lift dealer based in Coquitlam, British Columbia. This strategic move strengthens Savaria’s presence on the West Coast, particularly in the Vancouver area, which is a key market for luxury residential elevators. Western Elevator, with its strong local relationships and reputation for high-quality service, will continue to operate under the leadership of its current owners as a division of Savaria, ensuring continuity for customers and staff. This acquisition is expected to support Savaria’s growth and enhance its market positioning in the accessibility industry.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Savaria Corporation Reports Record Q1 2025 Results with Strategic Expansion
Positive
May 7, 2025

Savaria Corporation reported its strongest first quarter on record for 2025, with revenue reaching $220.2 million, a 5.2% increase from the previous year. The company’s growth was driven by a positive foreign exchange impact and organic growth, alongside contributions from the acquisition of Matot. The Accessibility segment saw significant growth, particularly in North America, while the Patient Care segment also experienced a modest increase. Savaria’s adjusted EBITDA rose by 17.2%, reflecting improved operating income and gross margins. The company also expanded its production capacity in South Carolina to meet future demand, demonstrating resilience and strategic growth in uncertain economic times.

Financial Disclosures
Savaria to Announce Q1 2025 Financial Results
Neutral
Apr 28, 2025

Savaria Corporation announced it will release its first quarter 2025 financial results on May 7, 2025, with an investor conference call scheduled for May 8, 2025. This announcement is part of Savaria’s ongoing commitment to transparency and engagement with its investors and stakeholders, reflecting its strong position in the accessibility industry.

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.Date of analysis: Jul 24, 2025