Is it a good company at a reasonable price? This has been a good stock for its shareholder so far. It has a niche market and this is generally good. It is always best to buy a stock you want to buy and hold over several years. It is testing as reasonable, but I would use caution as the stock is just off its latest high.
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 doing well for its shareholder. See the 10 year results below and results for years 5 to 23 further down in this blog entry. As far as insider selling and buy is concerned, for the people I am following, the Chairman and a Director was selling, but the CEO and one officer was buying. Most of the people I am following had no change.
If you had invested in this company in December 2014, for $1,000.50 you would have bought 230 shares at $4.35 per share. In December 2024, after 10 years you would have received $914.07 in dividends. The stock would be worth $4,574.70. Your total return would have been $5,488.77. This would be a total return of 20.84% per year with 16.42% from capital gain and 4.43% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $4.35 | $1,000.50 | 230 | 10 | $914.07 | $4,574.70 | $5,488.77 |
The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 2.69%. The 5, 10 and historical median dividend yield is also moderate at 3.23%, 2.98% and 3.41%. The dividend growth is low (below 8% per year) at 4.1% per year over the past 5 years. The last dividend increase was in 2025 and it was for 3.9%.
The Dividend Payout Ratios (DPR) could still improve. The DPR for 2024 for Earnings per Share (EPS) is too high at 77% with 5 year coverage at 100%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is too high at 52% with 5 year coverage at 87%. This is a better ratio for DPR, but it would be best if these ratios were in the 40% range or lower. Analysts expect this to happen next year. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 27% with 5 year coverage at 32%. The DPR for 2024 for Free Cash Flow (FCF) is good at 43% with 5 year coverage at 50%. There is no agreement on what the FCF is.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 77.16% | 99.57% |
| AEPS | 58.30% | 87.03% |
| CFPS | 27.26% | 31.66% |
| FCF | 43.82% | 50.21% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.16 and currently at 0.08. The Liquidity Ratio for 2024 is good at 1.81 and 1.80 currently. The Debt Ratio for 2024 is good at 2.07 and 2.11 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.94 and 0.94 and currently at 1.90 and 0.90.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.16 | 0.16 |
| Intang/GW | 0.43 | 0.43 |
| Liquidity | 1.81 | 1.80 |
| Liq. + CF | 2.26 | 2.31 |
| Debt Ratio | 2.07 | 2.11 |
| Leverage | 1.94 | 1.90 |
| D/E Ratio | 0.94 | 0.90 |
The Total Return per year is shown below for years of 5 to 23 to the end of 2024. 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. |
|---|---|---|---|---|---|
| 2019 | 5 | 4.07% | 10.47% | 7.35% | 3.12% |
| 2014 | 10 | 14.97% | 20.84% | 16.42% | 4.43% |
| 2009 | 15 | 21.02% | 31.35% | 23.39% | 7.96% |
| 2004 | 20 | 13.73% | 16.20% | 13.12% | 3.08% |
| 2001 | 23 | 10.76% | 17.30% | 14.41% | 2.89% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 21.69, 28.29 and 34.60. The corresponding 10 year ratios are 21.59, 27.18 and 34.74. The corresponding historical ratios are 14.54, 19.67 and 26.14. The current P/E Ratio is 21.43 based on a stock price of $20.04 and EPS estimate for 2025 of $0.94. The current ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 18.85, 22.87 and 28.82. The corresponding 10 year ratios are 19.15, 24.48 and 30.01. The corresponding historical ratios are 14.64, 21.05 and 26.36. The current P/E Ratio is 18.91 based on a stock price of $20.04 and AEPS estimate for 2025 of $1.06. The current ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $13.78. 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 1.45 based on a stock price of $20.04. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. The high ratios on the Graham Price is saying that the stock is being priced as a growth stock.
I get a 10-year median Price/Book Value per Share Ratio of 2.61. The current ratio is 2.52 based on a Book Value of $592M, Book Value per Share of $7.96 and a stock price of $20.04. The current ratio is 3.5% 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 ratio is 11.39 based on Cash Flow per Share estimate for 2025 of $1.76, Cash Flow of $130.9M and a stock price of $20.04. The current ratio is 26% 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 3.41%. The current dividend yield is 2.69% based on a stock price of $20.04 and dividends of $0.54. The current ratio is 20.9% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median dividend yield of 2.98%. The current dividend yield is 2.69% based on a stock price of $20.04 and dividends of $0.54. The current ratio is 9.5% below the historical dividend yield. 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 1.62 based on Revenue estimate for 2025 of $919M, Revenue per Share of $12.35 and a stock price of $20.04. The current ratio is 7.7% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably still reasonable. Most of the testing is saying that the stock price is relatively cheap to reasonable except for the dividend yield tests. The historical test says it is expensive and the 10 year median test says that it is reasonable but above the median. If you look at the chart, the stock price is off the recent high.
When I look at analysts’ recommendations, I find Strong Buy (1), and Buy (6). The consensus would be a Buy. The 12 month stock price is $24.29 with a high of $25.00 and low of $23.00. The consensus stock price of $24.29 implies a total return of 23.90% with 21.21% from capital gains and 2.69% from dividends based on a currently price of $20.04. Note that the stock price has hit highs of $20.61 in 2018, $22.42 in 2021 and recently $23.72 in 2024 before falling back again.
On Stock Chase some analysts like this company and some do not. They say it is ok, but not outstanding and that an investor should be careful. A worry is that they will be hit by Trump’s tariffs. Others think it is a good buy. Christopher Liew on Motley Fool thinks this stock is undervalued in its niche market. Rajiv Nanjapla on Motley Fool says he is bullish on due to its solid financials, growing addressable market, and growth initiatives. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their first quarter of 2025.
Simply Wall Street via Yahoo Finance reviews this stock. They have 2 warnings out on this stock of large one-off items impacting financial results; and significant insider selling over the past 3 months.
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 30, 2025 around 5 pm. Tomorrow on my other blog I will write about Social Media Scams.... learn more on Tuesday, July 28, 2025 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.
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