Wajax Corporation (TSE:WJX)
TSX:WJX
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Wajax Corporation
(TSX:WJX)
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Rating:65Neutral
Price Target:
C$32.00
▼(-0.74% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid financial performance led by strong recent free cash flow and improved leverage, plus attractive valuation (low P/E and high dividend). These positives are tempered by weak technical momentum (below key moving averages with negative MACD) and some demand/backlog softness noted on the earnings call despite operational improvements.
Positive Factors
Cash generation
Material improvement in operating cash flow and free cash flow provides durable internal funding for maintenance capex, rental fleet investments, dividends and debt paydown. Strong cash conversion reduces refinancing risk and gives management flexibility through industrial cycles.
Negative Factors
Revenue trend
Trailing revenue softness signals cooled end‑market demand and limited top‑line momentum. For a distribution and services business, continued revenue decline constrains operating leverage, limits aftermarket growth tailwinds and can expose margins to fixed‑cost absorption risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Material improvement in operating cash flow and free cash flow provides durable internal funding for maintenance capex, rental fleet investments, dividends and debt paydown. Strong cash conversion reduces refinancing risk and gives management flexibility through industrial cycles.
Read all positive factors
Wajax Corporation (WJX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$623.12M
Dividend Yield5.09%
Average Volume (3M)31.12K
Price to Earnings (P/E)9.9
Beta (1Y)0.72
Revenue Growth-3.59%
EPS Growth50.73%
CountryCA
Employees2,900
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)2.86
Shares Outstanding21,970,598
10 Day Avg. Volume35,455
30 Day Avg. Volume31,117
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)1.10
Price to Sales (P/S)0.28
P/FCF Ratio3.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$36.00Price Target Upside11.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.2
Revenue Forecast (FY)C$2.14B
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, dum...
How the Company Makes Money
Wajax primarily makes money by selling and renting equipment and by providing high-margin aftermarket support tied to that installed base. Key revenue streams include: (1) Equipment sales: revenue from selling new and used industrial and heavy equ...
Wajax Corporation Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial trajectory: the company delivered notable year-over-year margin expansion, strong adjusted EBITDA and EPS growth, material cash flow improvement, substantial inventory reductions and meaningful deleveraging back into target range. These improvements were coupled with strengthened liquidity, an important shipbuilding backlog addition and a completed CEO succession. Offsetting factors include modest Q4 revenue declines in several categories, a year-over-year drop in backlog, sequential softness in margins and ongoing end-market caution (project deferrals, weak forestry and industrial/commercial demand). On balance, the positive cash flow, margin gains, reduced leverage and strategic contract wins outweigh the transitory revenue and market challenges.Positive Updates
Improved Full-Year Revenue
Fiscal 2025 revenue of $2.145 billion, up $48 million or 2.3% from $2.097 billion in 2024, demonstrating full-year top-line growth despite a modest Q4 decline.
Negative Updates
Q4 Revenue Slight Decline
Revenue in Q4 2025 was $560 million, down $5.9 million or 1.0% versus Q4 2024, driven primarily by lower product support sales in Western and Eastern Canada, lower industrial parts sales in Central Canada and lower equipment sales across regions.
Read all updates
Q4-2025 Updates
Positive
Negative
Improved Full-Year Revenue
Fiscal 2025 revenue of $2.145 billion, up $48 million or 2.3% from $2.097 billion in 2024, demonstrating full-year top-line growth despite a modest Q4 decline.
Read all positive updates
Company Guidance
Management's guidance for 2026 emphasizes disciplined cost control, inventory optimization and margin improvement with an adjusted SG&A target at the lower end of the range (~14% run rate), maintaining leverage in the 1.5–2.0x target (Q4 leverage 1.62x, Q3 2.28x) and opportunistic, prudent capital allocation (annual maintenance spend ~$15M; material‑handling rental additions ~$15M). Key metrics backing the plan: FY‑2025 revenue $2.145B (up 2.3% YoY), adjusted EPS $2.90 (vs $2.44), operating cash flow $194M (vs $75.1M), Q4 revenue $560M (‑1% YoY), Q4 gross margin 18% (+100 bps YoY), Q4 adjusted EBITDA $44M (+25.2%; 7.9% margin vs 6.2% YoY), Q4 adjusted net earnings $0.71 (+104.1%), Q4 operating cash flow $81.5M, backlog $516.6M (down $10.1M QoQ, $47.8M YoY) including two large mining shovels, inventory $547.6M (down $58.2M QoQ, $126.4M YoY and >$200M from Mar‑31‑2024 peak) with turns up to 2.5x (from 2.0x), available credit $266.9M and an extended credit facility maturity to Oct 24, 2029; the board also approved a Q1‑2026 dividend of $0.35/share.Wajax Corporation Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
62
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.09B | 2.15B | 2.10B | 2.15B | 1.96B | 1.64B |
| Gross Profit | 404.66M | 405.41M | 413.78M | 444.19M | 390.31M | 331.85M |
| EBITDA | 191.37M | 182.31M | 156.13M | 194.71M | 169.69M | 147.92M |
| Net Income | 62.18M | 57.47M | 42.79M | 80.99M | 72.41M | 53.25M |
Balance Sheet | ||||||
| Total Assets | 1.46B | 1.37B | 1.55B | 1.47B | 1.25B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 2.95M | 8.31M | 7.35M | 0.00 | -158.45M | 9.99M |
| Total Debt | 395.69M | 421.89M | 548.20M | 500.87M | 303.04M | 321.58M |
| Total Liabilities | 910.02M | 830.25M | 1.04B | 977.08M | 800.11M | 690.93M |
| Stockholders Equity | 546.45M | 537.50M | 512.28M | 496.24M | 449.77M | 389.91M |
Cash Flow | ||||||
| Free Cash Flow | 199.13M | 183.97M | 60.81M | -98.85M | 59.12M | 182.81M |
| Operating Cash Flow | 208.39M | 193.00M | 69.95M | -89.00M | 69.13M | 190.15M |
| Investing Cash Flow | 4.18M | 275.00K | 156.00K | -24.63M | -14.35M | -62.58M |
| Financing Cash Flow | -209.58M | -192.31M | -61.36M | 117.47M | -70.00M | -124.20M |
Wajax Corporation Technical Analysis
Negative
32.24
Price Trends
31.79
Negative
30.34
Negative
27.30
Positive
Market Momentum
-1.00
Positive
31.27
Neutral
5.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WJX, the sentiment is Negative. The current price of 32.24 is above the 20-day moving average (MA) of 31.07, above the 50-day MA of 31.79, and above the 200-day MA of 27.30, indicating a neutral trend. The MACD of -1.00 indicates Positive momentum. The RSI at 31.27 is Neutral, neither overbought nor oversold. The STOCH value of 5.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WJX.
Wajax Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$3.20B | 9.20 | 12.22% | 3.88% | 11.72% | 33.83% | |
74 Outperform | C$18.25B | 42.80 | 16.06% | 1.25% | 4.85% | 4.18% | |
71 Outperform | C$2.82B | 606.91 | 23.71% | 0.99% | 13.42% | 17.76% | |
68 Neutral | C$13.35B | 23.26 | 24.05% | 1.58% | -6.98% | 11.17% | |
65 Neutral | C$623.12M | 9.90 | 11.63% | 5.09% | -3.59% | 50.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$4.33B | 30.95 | 1.09% | ― | 1.80% | -79.55% |
* Industrials Sector Average
TSE:WJX
Wajax Corporation
28.27
5.67
25.10%
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Wajax Corporation Corporate Events
Business Operations and StrategyFinancial Disclosures
Wajax Boosts Earnings, Cash Flow as Inventory Cuts Restore Target Leverage
Positive
Mar 3, 2026
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 hi...
Business Operations and StrategyExecutive/Board Changes
Wajax names George J. McClean as new CEO to drive next growth phase
Positive
Feb 12, 2026
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 Domaga...
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.