Wajax Corporation (WJX) AI Stock Analysis

• Market Cap: C$608.70M
• Dividend Yield: 5.09%
• Average Volume (3M): 31.12K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.92
• Revenue Growth: 3.71%
• EPS Growth: -12.70%
• Country: CA
• Employees: 2,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.73
• Shares Outstanding: 21,745,686
• 10 Day Avg. Volume: 35,455
• 30 Day Avg. Volume: 31,117
• PEG Ratio: -0.22
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 7.49
• 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$27.00
• Price Target Upside: -3.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$30.00 ▲(6.91% Upside)

The score is driven primarily by improving financial momentum and strong recent cash generation, supported by a moderate valuation and high dividend yield. Technicals are modestly positive but not strong, while earnings-call positives (margin/EBITDA and deleveraging) are tempered by backlog decline and competitive/economic pressures.

Positive Factors

Revenue Growth

The increase in revenue, especially from mining equipment sales, indicates strong demand and market position in the mining sector, supporting long-term growth.

Cost Management

Effective cost management through reduced selling and administrative expenses enhances profitability and operational efficiency, benefiting long-term financial health.

Inventory Management

Significant inventory reduction reflects improved operational efficiency and cash flow management, positioning the company well for future demand fluctuations.

Negative Factors

Gross Profit Margin Decline

The decline in gross profit margin due to market pressures and sales mix changes could impact long-term profitability and competitive positioning.

Decline in ERS Sales

A significant drop in ERS sales suggests challenges in maintaining market share and demand, potentially affecting future revenue streams.

Adjusted EBITDA and Net Earnings Decline

The decline in adjusted EBITDA and net earnings indicates financial strain, which could hinder investment in growth initiatives and shareholder returns.

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

Wajax Corporation displays a solid financial standing with strong profitability and stable leverage. The income statement shows a strong gross profit margin but indicates some pressure on profitability due to a decline in net income. The balance sheet reveals a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. Although revenue growth is positive, the decline from 2023 to 2024 raises concerns. The cash flow statement demonstrates recovering operating cash flow, though growth is inconsistent. Overall, vigilance over rising debt levels and strategic financial adjustments are crucial.

Income Statement

Wajax Corporation's income statement shows a strong gross profit margin, which remains stable over recent years. However, the net profit margin has decreased recently due to a decline in net income, indicating some pressure on profitability. Revenue growth has been positive, but the decline from 2023 to 2024 raises concerns. The absence of EBIT in 2024 is notable, but the EBITDA margin remains healthy, reflecting solid operating performance.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging. Return on equity is commendable, demonstrating efficient use of equity financing. However, the slight increase in total debt over the years suggests rising financial obligations. The equity ratio indicates a stable capital structure, though vigilance over rising liabilities is warranted.

Cash Flow

Wajax Corporation's cash flow statement demonstrates a recovering operating cash flow following a negative period in 2023. Free cash flow is positive, indicating strong cash generation capabilities, though growth remains inconsistent. The operating cash flow to net income ratio highlights a positive conversion, yet fluctuations in financing cash flow suggest variable financial strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.15B	2.10B	2.15B	1.96B	1.64B	1.42B
Gross Profit	405.80M	413.78M	444.19M	390.31M	331.85M	261.96M
EBITDA	157.74M	156.13M	194.71M	169.69M	147.92M	117.13M
Net Income	46.37M	42.79M	80.99M	72.41M	53.25M	31.65M
Balance Sheet
Total Assets	1.44B	1.55B	1.47B	1.25B	1.08B	981.39M
Cash, Cash Equivalents and Short-Term Investments	0.00	7.35M	0.00	-158.45M	9.99M	6.63M
Total Debt	480.80M	548.20M	500.87M	303.04M	321.58M	379.25M
Total Liabilities	904.61M	1.04B	977.08M	800.11M	690.93M	655.74M
Stockholders Equity	532.56M	512.28M	496.24M	449.77M	389.91M	325.65M
Cash Flow
Free Cash Flow	179.13M	60.81M	-98.85M	59.12M	182.81M	108.12M
Operating Cash Flow	188.41M	69.95M	-89.00M	69.13M	190.15M	118.81M
Investing Cash Flow	2.85M	156.00K	-24.63M	-14.35M	-62.58M	-17.64M
Financing Cash Flow	-182.04M	-61.36M	117.47M	-70.00M	-124.20M	-97.72M

Wajax Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 28.06 is above the 20-day moving average (MA) of 27.76, above the 50-day MA of 26.91, and above the 200-day MA of 22.79, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 75.37 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
FTT	78 Outperform	C$10.05B	19.24	19.66%	1.58%	1.32%	24.27%
RUS	73 Outperform	C$2.51B	15.47	10.04%	3.88%	8.15%	-3.57%
WJX	69 Neutral	C$608.70M	13.17	8.84%	5.09%	3.71%	-12.70%
TIH	69 Neutral	C$13.56B	27.78	16.34%	1.25%	2.97%	-0.80%
BDGI	66 Neutral	C$2.42B	29.68	22.05%	0.99%	13.02%	52.88%
ATS	66 Neutral	C$3.88B	-729.50	-0.27%	―	-5.59%	-104.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Wajax Corporation Corporate Events

Wajax Corporation Initiates CEO Succession Plan

Wajax Corporation has announced a CEO succession process, with current President and CEO Iggy Domagalski continuing in his role until a successor is found. Under Domagalski’s leadership since 2022, Wajax has navigated post-pandemic challenges, reduced inventory, strengthened its balance sheet, and completed the rollout of a new ERP system. The transition aims to build on the momentum created under Domagalski’s leadership, focusing on accelerating growth and capitalizing on emerging opportunities. The board has engaged an executive search firm to find a new CEO who will pursue organic growth, expand the industrial parts and engineered repair services portfolio, and drive operational efficiencies.

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