My intent on this blog is to highlight stocks that we feel correspond to our goals at GCM Financial. This includes established growth patterns in revenue, profits, and stock performance. There is no guarantee that stocks that fall into these categories will perform positively over periods of time, however chances are better that over the long haul these stocks will outperform their peers. This will not be an exhaustive list, just one to pique the interest of those readers who are looking for more material to gain insight into investment strategies.
Savaria Corporation (SIS.T) is a Canadian based company that designs, engineers and manufactures products for personal mobility. This fact makes Savaria an interesting story in the sense that we are part of an aging population. Stairs are an impediment to the elderly and Savaria designs and builds personal elevators that allow them to stay in their homes longer as well as having access to facilities difficult for them to reach. They also convert and adapt minivans for easy access for wheelchairs and scooters. With the baby boomer generation now entering their senior years the demand for such services can only increase. The boomers are entering this stage of their lives blessed with more wealth than previous generations and a strong desire to remain independent and viable as long as possible. Savaria offers products that offer them the possibility of continued independence for a price that many can afford.
Fundamentally Savaria rates extremely well.The following chart shows growth in all key areas, earnings, profit and assets. This company has achieved consistent growth and is well poised to continue that trend. We are very impressed as well with the growth in dividends per share which exceeds 30 per cent. A 2.3 per cent dividend yield has to be considered a major selling point with funding for the dividend firm. Their Debt to Capital ratio stands at 22.6%, a very positive feature. The Price/Earnings ratio stands at 24.3 which in our opinion is high but is warranted due to its consistent earnings growth, the forward P/E is estimated to be 21.7, slightly more tolerable.
Probably the best result Savaria has achieved is the stock price. From under two dollars three years ago it has risen to a high of seven dollars in April 2016. We feel this stock has legs and would expect it to continue to outperform the general market. We invite you to do your own due diligence before investing. Happy Returns.
| Annual Financials |
Dec 31,2014
12 Months, C$ |
Dec 31,2013
12 Months, C$ |
Dec 31,2012
12 Months, C$ |
3Yr. Growth |
| Total Revenue ($000): |
83,696 |
76,538 |
66,876 |
8.51 |
| Earnings before Interest & Tax ($000): |
9,542 |
7,958 |
2,977 |
38.03 |
| Profit/Loss ($000): |
6,391 |
5,299 |
1,578 |
47.26 |
| Earnings per Share: |
0.23 |
0.23 |
0.07 |
36.72 |
| Total Assets ($000): |
71,420 |
49,013 |
49,380 |
18.97 |
| Dividends Per Share |
0.24 |
0.14 |
0.09 |
|
| Dividend Yield: |
5.52 |
4.80 |
8.54 |
|
| Return on Com. Equity: |
22.55 |
26.86 |
8.02 |
|
| Employees: |
356 |
322 |
297 |
|
gcmfinancial 