Wajax Corp. (WJX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Russel Metals, Inc.

Wajax Corp.

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Parkland Corp.

Toromont Industries Ltd.

Superior Plus Corp.

Tidewater Midstream And Infrastructure Ltd.

First Hydrogen Corp.

Why is Wajax Corp. ?

High Management Efficiency with a high ROCE of 12.89%

With ROE of 9.34%, it has a very attractive valuation with a 0.97 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.61%, its profits have fallen by -31.4%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Wajax Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Wajax Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wajax Corp.

-100.0%

-0.22

37.49%

S&P/TSX 60

21.35%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.28%

EBIT Growth (5y)

6.89%

EBIT to Interest (avg)

4.04

Debt to EBITDA (avg)

1.91

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

2.45

Tax Ratio

26.82%

Dividend Payout Ratio

71.06%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

12.89%

ROE (avg)

12.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.97

EV to EBIT

8.11

EV to EBITDA

5.04

EV to Capital Employed

0.98

EV to Sales

0.38

PEG Ratio

Dividend Yield

ROCE (Latest)

12.13%

ROE (Latest)

9.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 140.18 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 49.18%

-5What is not working for the Company

NET PROFIT(9M)

At CAD 35.74 MM has Grown at -30.03%

ROCE(HY)

Lowest at 6.93%

RAW MATERIAL COST(Y)

Grown by 9.28% (YoY

Here's what is working for Wajax Corp.

Operating Cash Flow

Highest at CAD 140.18 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend Payout Ratio

Highest at 49.18%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Wajax Corp.

Net Profit

At CAD 35.74 MM has Grown at -30.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Raw Material Cost

Grown by 9.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales