Savaria (TSE:SIS)
TSX:SIS
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Savaria
(TSX:SIS)
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Rating:74Outperform
Price Target:
C$32.00
▲(10.84% Upside)
Action:Reiterated
Date:05/11/26
The score is driven primarily by strong financial performance (material margin and profitability improvement alongside lower leverage) and a positive earnings-call outlook with validated Q1 execution and clear long-term targets. Offsetting factors are mixed near-term technicals (below the 20-day average with only modest momentum signals) and a valuation that appears fair-to-slightly premium at ~21x earnings with a ~2% yield.
Positive Factors
Margin expansion and profitability
Sustained margin expansion to a 20.4% adjusted EBITDA level reflects structural operational leverage and pricing/ mix improvement. Higher recurring margins support durable cash generation, improve return on invested capital, and create room to fund growth or withstand slower demand.
Negative Factors
Working-capital / cash conversion friction
Persistent gaps between EBITDA and operating cash flow indicate material working‑capital consumption or timing volatility. That friction can limit true free cash conversion, constrain reinvestment or M&A pacing, and raise sensitivity to seasonal or receivables swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion and profitability
Sustained margin expansion to a 20.4% adjusted EBITDA level reflects structural operational leverage and pricing/ mix improvement. Higher recurring margins support durable cash generation, improve return on invested capital, and create room to fund growth or withstand slower demand.
Read all positive factors
Savaria (SIS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.06B
Dividend Yield2.35%
Average Volume (3M)92.56K
Price to Earnings (P/E)25.8
Beta (1Y)0.78
Revenue Growth5.72%
EPS Growth57.38%
CountryCA
Employees2,531
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.11
Shares Outstanding71,938,650
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$34.20Price Target Upside18.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.39
Revenue Forecast (FY)C$978.62M
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 makes money by selling and servicing accessibility and patient care equipment. Its revenue model is primarily product-driven, supplemented by installation and after-sales service.
Key revenue streams include:
- Equipment sales (Accessibil...
Savaria Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line growth (+7%), significant margin expansion (adjusted EBITDA margin +190 bps to 20.4%), an 82% increase in net earnings, reduced leverage (<1.0x) and meaningful operational gains from Savaria One (estimated ~$7M EBITDA uplift in Q1). Most lowlights (FX headwinds, seasonal noise, spare-part tariff issues, working capital timing and the delayed impact of new product lines) are manageable and accompanied by mitigation plans. Given the balance of multiple positive financial and operational trends, ample liquidity for M&A, and clear targets for growth and margin sustainability, the overall tone was constructive and forward-looking.Positive Updates
Revenue Growth
Consolidated revenue of $235.5M in Q1, up $15.3M or 7% year-over-year driven by 5.7% organic growth, 0.7% from acquisitions and a 0.6% positive FX impact.
Negative Updates
Foreign Exchange Headwinds
Patient Care experienced a -2.7% negative FX impact on U.S. dollar; U.S. results were relatively flat with FX cited as a headwind that offset organic gains in some areas.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Consolidated revenue of $235.5M in Q1, up $15.3M or 7% year-over-year driven by 5.7% organic growth, 0.7% from acquisitions and a 0.6% positive FX impact.
Read all positive updates
Company Guidance
Management reiterated a multi-year target to grow revenues ~12% annually to about $1.6 billion by 2030 while maintaining adjusted EBITDA margins of at least 20%—which translates to roughly $320 million of EBITDA and $4.25 of EBITDA per share by 2030—and said it intends to pursue roughly $200 million of small-to-mid‑sized acquisitions over the next five years, funded in part by $324 million of available liquidity and a net debt/EBITDA ratio of 0.92x. They pointed to Q1 results as validation of the plan (Q1 revenue $235.5M, +7% YoY; organic +5.7%; adjusted EBITDA $48.1M, 20.4%; gross margin 38.9%; operating income +$11.7M YoY; net earnings $22.7M; EPS $0.31; cash from ops $35.8M), noted Q1 CapEx was $6M (2.5% of sales) and full‑year CapEx is expected to be slightly >2.5% but <3% mainly for the Greenville expansion, and said Q1 is seasonally weakest so margins and operating leverage should improve through the remainder of the year.Savaria Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 928.84M | 913.53M | 867.76M | 836.95M | 789.09M | 660.98M |
| Gross Profit | 362.29M | 321.22M | 321.71M | 286.02M | 254.37M | 215.54M |
| EBITDA | 176.47M | 164.55M | 136.58M | 123.82M | 114.14M | 82.70M |
| Net Income | 78.97M | 68.77M | 48.51M | 37.84M | 35.31M | 11.54M |
Balance Sheet | ||||||
| Total Assets | 1.12B | 1.10B | 1.11B | 1.10B | 1.11B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 32.44M | 18.62M | 35.24M | 54.27M | 45.24M | 63.49M |
| Total Debt | 207.32M | 205.91M | 292.62M | 319.38M | 410.07M | 432.34M |
| Total Liabilities | 458.12M | 458.10M | 538.94M | 552.57M | 656.99M | 672.32M |
| Stockholders Equity | 659.79M | 640.83M | 575.27M | 549.00M | 452.97M | 434.60M |
Cash Flow | ||||||
| Free Cash Flow | 119.41M | 115.53M | 99.95M | 59.76M | 70.22M | 41.56M |
| Operating Cash Flow | 138.14M | 128.17M | 120.10M | 78.62M | 90.74M | 57.28M |
| Investing Cash Flow | -24.82M | -20.95M | -20.63M | -6.36M | -21.58M | -396.44M |
| Financing Cash Flow | -120.30M | -125.85M | -118.00M | -63.11M | -83.25M | 351.80M |
Savaria Technical Analysis
Positive
28.87
Price Trends
28.20
Positive
26.50
Positive
23.83
Positive
Market Momentum
0.08
Negative
51.54
Neutral
68.88
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 28.87 is above the 20-day moving average (MA) of 28.64, above the 50-day MA of 28.20, and above the 200-day MA of 23.83, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 68.88 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
28.40
9.72
52.02%
TSE:REKO
Reko International
4.39
0.89
25.43%
TSE:VLN
Velan Inc. SV
15.55
1.09
7.52%
Savaria Corporate Events
Business Operations and StrategyFinancial Disclosures
Savaria Sets Ambitious 2030 Growth Targets as Q1 2026 Results Beat on Profitability
Positive
Apr 14, 2026
Savaria Corporation used its 2026 Investor Day in Brampton, Ontario to highlight the impact of its Savaria One transformation plan, which has streamlined operations, procurement and sales across 14 factories and 2,550 employees. The company report...
Business Operations and StrategyDividends
Savaria Maintains Monthly Dividend, Signaling Confidence in Accessibility Business
Positive
Mar 20, 2026
Savaria Corporation has declared a monthly dividend of 4.67 cents per common share, payable on April 10, 2026, to shareholders of record as of March 31, 2026, in line with its existing dividend policy. The announcement underscores the company̵...
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...
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.