Is it a good company at a reasonable price? This company has good growth, but with ratios on the high side. For example, the 10 year P/AEPS low , median, and high ratios are ratios are 17.05, 24.48 and 30.01 when generally speaking a P/E Ratio of 20.00 is considered high. On the other hand, fast growing companies tend to have higher ratios, but growth seems to be slowing. The current price seems to be in a reasonable range. However, I doubt if future investors will do as well as people who bought 10 and 15 years ago.
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 that this company has been growing nicely, they have especially good Revenue growth.
| Year | Item | Tot. Growth | Per Year |
|---|---|---|---|
| 5 | Revenue Growth | 337.13% | 34.31% |
| 5 | AEPS Growth | 29.79% | 5.35% |
| 5 | Net Income Growth | 83.45% | 12.90% |
| 5 | Cash Flow Growth | 371.58% | 36.37% |
| 5 | Dividend Growth | 77.26% | 12.13% |
| 5 | Stock Price Growth | -23.22% | -5.15% |
| 10 | Revenue Growth | 1082.44% | 28.02% |
| 10 | AEPS Growth | 771.43% | 24.17% |
| 10 | Net Income Growth | 2137.71% | 36.45% |
| 10 | Cash Flow Growth | 1769.43% | 34.02% |
| 10 | Dividend Growth | 437.45% | 18.31% |
| 10 | Stock Price Growth | 796.79% | 24.53% |
If you had invested in this company in December 2012, for $1,001.52 you would have bought 642 shares at $1.56 per share. In December 2022, after 10 years you would have received $2,124.96 in dividends. The stock would be worth $8,981.58. Your total return would have been $11,106.54. This is a total return would be 32.28% per year with a capital gain of 24.53% and dividends of 7.75%.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $1.56 | $1,001.52 | 642 | 10 | $2,124.96 | $8,981.58 | $11,106.54 |
The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 2.97%. The 5, 10 and historical dividend yields are also moderate at 3.23%, 3.26%, and 3.43%. The dividends have been increasing at a moderate rate (8% to 14% ranges) at 12% per year over the past 5 years. However, the last dividend increase in was in 2022 and it was for 3.8%. Over the past 17 years, dividends have increased in 12 years and decreased 5 years. The last decrease was in 2012.
The Dividend Payout Ratios (DPR) are higher than what I would like, especially the one for AEPS. The DPR for 2022 for Earnings per Share (EPS) is 92% with 5 year coverage at 103%. The DPR for 2022 for Adjusted Earnings per Share (AEPS) is 83% with 5 year coverage at 92%. The DPR for 2022 Cash Flow per Share (CFPS) is 38% with 5 year coverage at 37%. The DPR for 2022 for Free Cash Flow (FCF) is 42% with 5 year coverage at 63%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 91.85% | 103.19% |
| AEPS | 82.82% | 92.06% |
| CFPS | 28.30% | 37.35% |
| FCF | 42.04% | 62.52% |
Debt Ratios are fine. The Long Term Debt/Market Cap for 2022 is good at 0.41. The Liquidity Ratio for 2022 is good at 1.79. The Debt Ratio is good at 1.69. The Leverage and Debt/Equity Ratios are fine at 2.45 and 1.45.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.41 | 0.33 |
| Intang/GW | 0.72 | 0.58 |
| Liquidity | 1.79 | 1.86 |
| Liq. + CF | 2.11 | 2.20 |
| Debt Ratio | 1.69 | 1.69 |
| Leverage | 2.45 | 2.45 |
| D/E Ratio | 1.45 | 1.45 |
The Total Return per year is shown below for years of 5 to 21 to the end of 2022. 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 chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2017 | 5 | 12.13% | -2.38% | -5.15% | 2.77% |
| 2012 | 10 | 18.31% | 32.28% | 24.53% | 7.75% |
| 2007 | 15 | 12.89% | 22.84% | 17.79% | 5.05% |
| 2002 | 20 | 15.13% | 9.60% | 7.57% | 2.03% |
| 2001 | 21 | 16.96% | 13.96% | 3.00% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 22.99, 28.45 and 34.60. The corresponding 10 year ratios are 17.42, 24.92 and 32.82. The corresponding historical ratios are 14.38, 22.88 and 14.38. The current P/E Ratio is 28.72 based on a stock price of $17.52 and EPS estimate for 2023 of $0.61. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 20.10, 25.65 and 31.20. The corresponding 10 year ratios are 17.05, 24.48 and 30.01. The current P/AEPS Ratio is 26.95 based on AEPS estimate for 2023 of $0.65 and a stock price of $17.52. The current ratio is between the median and high ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $10.17. The 10-year low, median, and high median Price/Graham Price Ratios are 1.28, 1.63 and 1.98. The current P/GP Ratio is 1.72 based on a stock price of $17.52. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10-year median Price/Book Value per Share Ratio of 2.86. The current P/B Ratio is 2.48 based on a stock price of $17.52, Book Value of $4557M and Book Value per Share of $7.07. The current ratio is 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 15.36. The current P/CF Ratio is 12.08 based on Cash Flow per Share estimate for 2023 of $1.45, Cash Flow of $93.4M and a stock price of $17.52. The current ratio is 21% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 3.43%. The current dividend yield is 2.97% based on a stock price of $17.52 and dividends of $0.5196. The current dividend yield is 14% below the historical year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median dividend yield of 3.26%. The current dividend yield is 2.97% based on a stock price of $17.52 and dividends of $0.5196. The current dividend yield is 9% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10-year median Price/Sales (Revenue) Ratio is 1.76. The current P/S Ratio is 1.33 based on a stock price of $17.52, Revenue estimate for 2023 of $849 and Revenue per Share of $13.18. The current ratio is 24% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is that the price is probably reasonable. The dividend yield testing says the stock price is reasonable, but above the median and the P/S Ratio tests says the stock price is cheap. Most of the other testing says the stock price is reasonable or cheap.
When I look at analysts’ recommendations, I find Buy (8) recommendations. The consensus would be a Buy. The 12 month stock price consensus is $21.56. This implies a total return of $26.03% with 23.06% from capital gains and 2.97% from dividends.
Most analysts on Stock Chase think this stock is a good buy. This company is not on the Money Sense list, but it is on the Maple Money List and the Aristocrat lists. Stock Chase gives this stock 4 stars out of 5. Aditya Raghunath on Motley Fool. Rajiv Nanjapla on Motley Fool thinks this is a riskier stock, but has great long-term potential. The company put out a Press Release about their results for 2022. The company put out a press release on Globe Newswire about their first quarter of 2023 results.
Simply Wall Street on Yahoo Finance says that this stock is worth $21.71 CDN$. Simply Wall Street is giving this stock 2 warnings of have a high level of debt; and dividend of 2.98% is not well covered. Simply Wall Street gives this stock 4 stars out of 5.
Savaria Corp designs, engineers, and manufactures products for personal mobility. Its products include home elevators, wheelchair lifts, commercial elevators, ceiling lifts, stairlifts, and van conversions. 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 Wednesday, July 26, 2023 around 5 pm. Tomorrow on my other blog I will write about Future Crunch on TED.... learn more on Tuesday, July 25, 2023 around 5 pm.
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