Wednesday, August 1, 2018

Savaria Corporation

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. This stock is showing as relatively expensive consistently on all my stock price tests. It is a good company, but I believe the price is just too high. See my spreadsheet on Savaria Corporation.

I do not own this stock of Savaria Corporation (TSX-SIS, OTC-SISXF). I got this stock off the Dividend Blogger site that no longer exists. I am always interested in dividend growth small cap stock. The first few years of accounting were rather confusing, but I think I figured them out in the end.

When I was updating my spreadsheet, I noticed is that the company has done well for shareholders, especially lately as you can see from the chart below. Another thing that there has been increases in the number of outstanding shares, especially over the past 5 years. The outstanding shares have increased by 12.5% and 4% per year over the past 5 and 10 years.

Dividends are moderate with good growth. The current dividend yield is 2.17%, with 5, 10 and historical yields at 3.30%, 3.89% and 3.70%. The dividend growth is at 25%, 13% and 22% per year over the past 5, 10 and 12 years. However, there were years when dividends were cut as well as increased. Overall dividends have increased. Dividends were started in 2004.

The Dividend Payout Ratio for 2017 is 60.6% with 5 year coverage of 67%. The Dividend Payout Ratios have been too high in the past. The most recent ones are fine with the 5 year coverage a bit high but this was due to 2014 when there was a big dividend increase, but not a big EPS increase.

All the Debt Ratios are good. The Long Term Debt to Market Cap is 0.05 which is very low. The Liquidity Ratio for 2017 is 2.42 with 5 year median at 2.49. The Debt Ratio for 2017 is 2.71 with 5 year median at 2.06. I like these at 1.50 or above. The Leverage and Debt/Equity Ratios are also quite good at 1.58 and 0.58 respectively with 5 year medians of 2.03 and 1.03 respectively. This is a small cap stock and it is important to have good debt ratios when you are a small cap.

The Total Return per year is show below for years of 5 to 16. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

Shareholders have recently done very well on this stock in both capital gains and dividend growth. The stock has gone down a bit this year. However, the TSX has not done well overall either.

Years Div. Gth Tot Ret Cap Gain Div.
5 24.84% 69.25% 63.49% 5.77%
10 13.27% 34.45% 31.26% 3.18%
15 22.48% 13.22% 12.18% 1.04%
16 22.25% 20.68% 1.57%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.26, 18.41 and 22.18. The corresponding 10 year ratios are 13.65, 16.57 and 20.38. The historical ratios are 13.70, 17.41 and 20.88. The current P/E Ratio is 28.57 based on a stock price of $16.57 and 2018 EPS estimate of $0.58. This stock price testing suggests that the stock is relatively expensive.

I get a Graham Price of $6.66. The 10 year low, median, and high median Price/Graham Price Ratios are 0.95, 1.17 and 1.42. The current P/GP Ratio is 2.49 based on a stock price of $16.57. This stock price testing suggests that the stock is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 2.13. The current P/B Ratio is 4.87 based on Book Value of $140M, Book Value per Share of $3.40 and a stock price of $16.57. The current P/B Ratio is some 129% above the 10 year median. This stock price testing suggests that the stock is relatively expensive.

I get an historical median dividend yield of 3.70%. The current dividend yield is 2.17% based on dividends of $3.60 and a stock price of $16.57. The current yield is some 41% below the historical dividend yield. This stock price testing suggests that the stock is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.67. The current P/S Ratio is 2.43 based on 2018 Revenue estimate of $281, Revenue per Share of 6.81 and a stock price of $16.57. The current P/S Ratio is some 203% above the 10 year median P/S Ratio. This stock price testing suggests that the stock is relatively expensive.

When I look at analysts’ recommendations I find Strong Buy (1) and Buy (5). The consensus would be a Buy. The 12 month stock price is $20.67. This implies a total return of 26.92% with 24.74% from capital gains and 2.17% from dividends based on a current stock price of $16.57.

The company in this article on Globe News Wire talks about their acquisition of a lift company. Daisy Mock on Simply Wall Street says this stock has an intrinsic value of $10.12 so it is currently overvalued. Joey Frenette on Motley Fool thinks that the stock is overpriced. See what analysts are saying on Stock Chase. A number of analysts like this company.

Savaria Corp designs, engineers, and manufactures products for personal mobility of the people. Its products are home elevators, wheelchair lifts, commercial elevators, ceiling lift, stair lift, van conversions and others. Its web site is here Savaria Corporation.

The last stock I wrote about was about was TECSYS Inc. (TSX-TCS, OTC-TCYSF) ... learn more. The next stock I will write about will be Ballard Power Systems Inc. (TSX-BLDP, NASDAQ-BLDP) ... learn more on Friday, August 3, 2018 around 5 pm. Tomorrow on my other blog I will write about Enbridge.... learn more on Thursday, August 20, 2018 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

1 comment:

  1. Very creativity blog!!! I learned a lot of new things from your post. It is really a good work and your post is the knowledgeable. Waiting for your more updates...
    Home elevators | Home elevator dubai | vacuum elevators