Wajax Corporation (WJX) AI Stock Analysis

• Market Cap: C$731.05M
• Dividend Yield: 5.09%
• Average Volume (3M): 31.12K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.71
• Revenue Growth: 3.71%
• EPS Growth: -12.70%
• Country: CA
• Employees: 2,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.69
• Shares Outstanding: 21,970,598
• 10 Day Avg. Volume: 35,455
• 30 Day Avg. Volume: 31,117
• PEG Ratio: 0.30
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 3.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$34.75
• Price Target Upside: 3.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.18
• Revenue Forecast (FY): C$2.14B

• Rating: 66 Neutral
• Price Target: C$37.00 ▲(10.58% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by improving financial performance (stronger recent cash generation and reduced leverage) and an attractive valuation (low P/E with a solid dividend). These positives are tempered by extended technicals (overbought signals) and lingering demand/backlog softness highlighted on the earnings call.

Positive Factors

Improved cash generation

Sustained improvement in operating cash flow provides durable funding for debt reduction, maintenance capex and dividends. Strong cash conversion in 2024–2025 increases financial flexibility, lowers refinancing risk and supports execution of multi‑quarter operational plans.

Working capital optimization

Material inventory reduction and higher turns relieve capital tied up in stock, improving cash flow and margin resilience. Better working capital efficiency is a structural benefit that supports sustained liquidity and reduces vulnerability to future demand softness.

Deleveraging and liquidity

Leverage moved back into management's 1.5–2.0x target and available credit plus a longer facility maturity materially reduce near‑term refinancing risk. This structural strengthening of the balance sheet supports consistent capital allocation and operational continuity.

Negative Factors

Revenue volatility

Recent top‑line softness continues a pattern of volatile revenue across the cycle. Persistent swings in equipment and parts sales increase earnings uncertainty and make multi‑period planning harder, pressuring sustainable margin and cash expectations over the next several quarters.

Backlog concentration risk

A meaningful portion of near‑term revenue is tied to a few large contracts, concentrating execution and timing risk. Delays or scope changes on those projects would create outsized swings in revenue and backlog conversion over the coming 2–6 quarters.

End‑market demand softness

Structural weakness and customer capital deferrals in forestry, industrial and commercial segments reduce recurring parts and service demand. Prolonged weakness in these end markets could impede recovery in aftermarket revenue and rental utilization over multiple quarters.

Wajax Corporation Business Overview & Revenue Model

Company Description

Wajax Corporation provides sales, parts, and services to construction, forestry, mining, industrial/commercial, oil sands, transportation, metal processing, government, utilities, and oil and gas sectors. The company offers compact excavators, dump trucks, excavators, wheel loaders, and wheeled excavators; aerial devices, boom lifts, cranes, digger derricks, drills, lifts, and material and scissor lifts; engines and transmissions; and feller bunchers, felling heads, flail debarkers, forestry processors, forwarders, grinders, log loaders, skidders, track and wheel harvesters, and wood chippers. It also provides bearings, bulk material handling, filtration, fluid handling, hydraulics, industrial electric motors and variable frequency drives, instrumentation, pneumatics, power transmissions, and safety and mill supplies, as well as sealing, belting, lubricants, and hydraulic hoses; combination sweeper scrubbers, container handlers, electric ride scooters, end rider trucks, forklifts, order pickers, pallet stackers and trucks, reach stackers, rider and walk behind sweepers, side loaders, tow tractors, and utility vehicles; and equipment transport, filtration, fluid handling, mining excavators, rigid frame trucks, rope shovel, underground battery powered and drill jumbos, underground haul trucks and loaders, underground roof bolters and scaling machines, and underground utility trucks. In addition, the company offers power generation solutions; and cages and partitions, guarding and barriers, lockers, cabinets, workstations, rack accessories and protections, racking, shelving, and storage platforms, as well as storage system design, installation, and inspection services. The company was formerly known as Wajax Income Fund and changed its name to Wajax Corporation in January 2011. Wajax Corporation was founded in 1858 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Wajax Corporation generates revenue primarily through the sale and leasing of equipment and machinery, along with providing related services such as maintenance and repair. The company's key revenue streams include the distribution of new and used equipment, sale of industrial components, and provision of power systems. Wajax also earns income from service contracts, parts sales, and technical support services. Strategic partnerships with leading equipment manufacturers and a strong network of suppliers are significant contributors to its earnings, enabling Wajax to offer a comprehensive portfolio of products and solutions to its customers across Canada.

Wajax Corporation Financial Statement Overview

Summary

Overall fundamentals are mixed but improving: cash flow rebounded strongly (notably positive FCF in 2024–2025 after weakness in 2023) and debt levels have improved, but revenue and earnings trends have been volatile and leverage remains a key watch item.

Income Statement

Revenue has been volatile: strong growth in 2021–2022 and 2023, followed by declines in 2024 and a sharp drop in 2025. Profitability remains positive, but margins appear to have compressed versus the 2022–2023 peak (net income fell from 2023 to 2024, and 2025 revenue declined materially). Offsetting this, the business still produces meaningful operating earnings (EBIT and EBITDA remain solid in absolute dollars), suggesting resilience, but the recent top-line contraction and weaker earnings trajectory temper the score.

Balance Sheet

Leverage is moderate-to-elevated for the profile: debt-to-equity was around ~1.0 in 2023–2024, improved in 2025 as total debt declined, but remains a key risk factor versus earlier years (2021–2022 were notably lower). Equity has grown over time, supporting the capital base, and returns on equity were strong in 2022–2023 before cooling in 2024. Overall, the balance sheet looks serviceable and improving on debt levels, but leverage is still meaningful and warrants monitoring through the cycle.

Cash Flow

Cash generation is a relative strength recently: free cash flow was strongly positive in 2024 and 2025, with very strong growth reported in 2024 and 2025, and 2025 showing particularly high free cash flow versus earnings (suggesting good cash conversion that year). However, cash flow has been inconsistent across the cycle, including negative operating cash flow and negative free cash flow in 2023. The improving 2024–2025 cash performance lifts the score, while the 2023 volatility keeps it below top-tier.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.15B	2.10B	2.15B	1.96B	1.64B
Gross Profit	405.41M	413.78M	444.19M	390.31M	331.85M
EBITDA	182.31M	156.13M	194.71M	169.69M	147.92M
Net Income	57.47M	42.79M	80.99M	72.41M	53.25M
Balance Sheet
Total Assets	1.37B	1.55B	1.47B	1.25B	1.08B
Cash, Cash Equivalents and Short-Term Investments	8.31M	7.35M	0.00	-158.45M	9.99M
Total Debt	421.89M	548.20M	500.87M	303.04M	321.58M
Total Liabilities	830.25M	1.04B	977.08M	800.11M	690.93M
Stockholders Equity	537.50M	512.28M	496.24M	449.77M	389.91M
Cash Flow
Free Cash Flow	183.97M	60.81M	-98.85M	59.12M	182.81M
Operating Cash Flow	193.00M	69.95M	-89.00M	69.13M	190.15M
Investing Cash Flow	275.00K	156.00K	-24.63M	-14.35M	-62.58M
Financing Cash Flow	-192.31M	-61.36M	117.47M	-70.00M	-124.20M

Wajax Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WJX, the sentiment is Positive. The current price of 33.46 is above the 20-day moving average (MA) of 31.24, above the 50-day MA of 29.46, and above the 200-day MA of 25.23, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 75.82 is Negative, neither overbought nor oversold. The STOCH value of 68.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WJX.

Wajax Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIH	73 Outperform	C$16.32B	27.18	15.97%	1.25%	2.97%	-0.80%
FTT	71 Outperform	C$11.57B	19.57	19.66%	1.58%	1.32%	24.27%
WJX	66 Neutral	C$731.05M	10.32	10.91%	5.09%	3.71%	-12.70%
RUS	65 Neutral	$2.56B	14.57	10.04%	3.88%	8.15%	-3.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BDGI	61 Neutral	C$2.17B	29.89	22.05%	0.99%	13.02%	52.88%
ATS	60 Neutral	C$4.03B	30.95	-0.27%	―	-5.59%	-104.09%

Wajax Corporation Corporate Events

Wajax Boosts Earnings, Cash Flow as Inventory Cuts Restore Target Leverage

Wajax Corporation reported 2025 revenue of $2.15 billion, up 2.3% from 2024, with fourth-quarter sales essentially flat at $560 million but adjusted earnings per share more than doubling in the quarter and rising 19.2% for the year. The company highlighted a 100-basis-point improvement in quarterly gross margin, a sharp reduction in selling and administrative expenses, and strong growth in cash from operations, driven largely by inventory optimization that cut inventories by $126.4 million in 2025 and reduced its leverage ratio to within the target range of 1.5 to 2.0 times.

Management emphasized that disciplined cost control, tighter working-capital management and margin improvement initiatives have strengthened Wajax’s balance sheet and enhanced profitability, positioning the business more defensively amid competitive market conditions. Improved product support margins and better performance in industrial parts and engineered repair services in the latter half of 2025 suggest a more resilient earnings mix going into 2026, as the company maintains its focus on efficiency, cash generation and sustainable performance.

The most recent analyst rating on (TSE:WJX) stock is a Hold with a C$29.00 price target. To see the full list of analyst forecasts on Wajax Corporation stock, see the TSE:WJX Stock Forecast page.

Wajax names George J. McClean as new CEO to drive next growth phase

Wajax Corporation has appointed George J. McClean as president and chief executive officer, effective March 3, 2026, following a CEO succession process launched in October 2025. McClean will also join the board, succeeding outgoing CEO Iggy Domagalski, who is credited by the board with positioning Wajax for sustainable growth.

McClean brings three decades of Canadian and international leadership experience across manufacturing, distribution, retail, services, and engineered solutions, including senior roles at Sonepar Canada Inc., National Tire Distributors Inc., General Motors and W.W. Grainger. The board highlights his track record in major transformations, operational excellence, digitization and cultural change, while McClean signals priorities of empowering employees, accelerating growth and strengthening Wajax’s standing as an industrial leader.

His professional credentials include an MBA, a Juris Doctor, CPA and ICD.D designation, along with multiple leadership and safety awards, underscoring a governance- and safety-focused profile. The appointment is intended to build on Wajax’s existing strategic foundation and is aimed at driving long-term value creation for customers, employees and shareholders in the competitive industrial distribution and services market.

The most recent analyst rating on (TSE:WJX) stock is a Hold with a C$29.00 price target. To see the full list of analyst forecasts on Wajax Corporation stock, see the TSE:WJX Stock Forecast page.