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Cervus Equipment

TSX:CERV
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CERV
TSX
CA$104M
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company description

Cervus Equipment Corporation provides equipment solutions to customers in agriculture, transportation, and industrial markets in Canada, Australia, and New Zealand. The last earnings update was 22 days ago. More info.


Add to Portfolio Compare Print
  • Cervus Equipment has significant price volatility in the past 3 months.
CERV Share Price and Events
7 Day Returns
13.7%
TSX:CERV
0.4%
CA Trade Distributors
-0.1%
CA Market
1 Year Returns
-49.4%
TSX:CERV
-26.5%
CA Trade Distributors
-24.6%
CA Market
CERV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cervus Equipment (CERV) 13.7% -17.8% -19.2% -49.4% -45.5% -65.6%
CA Trade Distributors 0.4% -20.8% -28.2% -26.5% -21.5% -10.5%
CA Market -0.1% -21.2% -24.7% -24.6% -22.1% -16.5%
1 Year Return vs Industry and Market
  • CERV underperformed the Trade Distributors industry which returned -26.5% over the past year.
  • CERV underperformed the Market in Canada which returned -24.6% over the past year.
Price Volatility
CERV
Industry
5yr Volatility vs Market

Value

 Is Cervus Equipment undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cervus Equipment to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cervus Equipment.

TSX:CERV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CERV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.868 (1 + (1- 26.5%) (306.65%))
2.221
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (2 * 5.44%)
12.32%

Discounted Cash Flow Calculation for TSX:CERV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cervus Equipment is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:CERV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 12.32%)
2020 11.00 Analyst x1 9.79
2021 16.00 Analyst x1 12.68
2022 19.89 Est @ 24.3% 14.04
2023 23.36 Est @ 17.44% 14.67
2024 26.31 Est @ 12.64% 14.72
2025 28.75 Est @ 9.28% 14.32
2026 30.74 Est @ 6.93% 13.63
2027 32.37 Est @ 5.28% 12.78
2028 33.70 Est @ 4.13% 11.85
2029 34.82 Est @ 3.32% 10.90
Present value of next 10 years cash flows CA$129.00
TSX:CERV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$34.82 × (1 + 1.44%) ÷ (12.32% – 1.44%)
CA$324.66
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$324.66 ÷ (1 + 12.32%)10
CA$101.59
TSX:CERV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$129.00 + CA$101.59
CA$230.59
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$230.59 / 16.00
CA$14.41
TSX:CERV Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$14.41
Current discount Discount to share price of CA$6.49
= -1 x (CA$6.49 - CA$14.41) / CA$14.41
55%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cervus Equipment is available for.
Intrinsic value
>50%
Share price is CA$6.49 vs Future cash flow value of CA$14.41
Current Discount Checks
For Cervus Equipment to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cervus Equipment's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cervus Equipment's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cervus Equipment's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cervus Equipment's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CERV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$-0.56
TSX:CERV Share Price ** TSX (2020-04-02) in CAD CA$6.49
Canada Trade Distributors Industry PE Ratio Median Figure of 10 Publicly-Listed Trade Distributors Companies 10.03x
Canada Market PE Ratio Median Figure of 497 Publicly-Listed Companies 10.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cervus Equipment.

TSX:CERV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CERV Share Price ÷ EPS (both in CAD)

= 6.49 ÷ -0.56

-11.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cervus Equipment is loss making, we can't compare its value to the CA Trade Distributors industry average.
  • Cervus Equipment is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Cervus Equipment's expected growth come at a high price?
Raw Data
TSX:CERV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -11.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
127.9%per year
Canada Trade Distributors Industry PEG Ratio Median Figure of 5 Publicly-Listed Trade Distributors Companies 0.44x
Canada Market PEG Ratio Median Figure of 233 Publicly-Listed Companies 0.67x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Cervus Equipment, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Cervus Equipment's assets?
Raw Data
TSX:CERV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$14.80
TSX:CERV Share Price * TSX (2020-04-02) in CAD CA$6.49
Canada Trade Distributors Industry PB Ratio Median Figure of 18 Publicly-Listed Trade Distributors Companies 0.7x
Canada Market PB Ratio Median Figure of 2,356 Publicly-Listed Companies 0.98x
TSX:CERV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CERV Share Price ÷ Book Value per Share (both in CAD)

= 6.49 ÷ 14.80

0.44x

* Primary Listing of Cervus Equipment.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cervus Equipment is good value based on assets compared to the CA Trade Distributors industry average.
X
Value checks
We assess Cervus Equipment's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Cervus Equipment has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cervus Equipment expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
127.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cervus Equipment expected to grow at an attractive rate?
  • Cervus Equipment's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Cervus Equipment's earnings growth is expected to exceed the Canada market average.
  • Cervus Equipment's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CERV Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CERV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 127.9%
TSX:CERV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 2.5%
Canada Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 5.3%
Canada Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 1.8%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CERV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CERV Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,197 33 10 3
2020-12-31 1,160 28 4 3
2020-04-03
TSX:CERV Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,139 27 -9
2019-09-30 1,180 47 5
2019-06-30 1,255 -3 19
2019-03-31 1,336 11 24
2018-12-31 1,350 13 25
2018-09-30 1,323 8 23
2018-06-30 1,290 7 21
2018-03-31 1,239 18 20
2017-12-31 1,221 34 20
2017-09-30 1,221 12 25
2017-06-30 1,195 26 26
2017-03-31 1,133 14 20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cervus Equipment's earnings are expected to grow significantly at over 20% yearly.
  • Cervus Equipment's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CERV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Cervus Equipment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CERV Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.74 0.83 0.65 2.00
2020-12-31 0.26 0.26 0.25 2.00
2020-04-03
TSX:CERV Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 -0.56
2019-09-30 0.34
2019-06-30 1.23
2019-03-31 1.54
2018-12-31 1.58
2018-09-30 1.50
2018-06-30 1.32
2018-03-31 1.25
2017-12-31 1.27
2017-09-30 1.58
2017-06-30 1.67
2017-03-31 1.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Cervus Equipment will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Cervus Equipment's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cervus Equipment has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cervus Equipment performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cervus Equipment's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cervus Equipment does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Cervus Equipment's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Cervus Equipment's 1-year growth to the CA Trade Distributors industry average as it is not currently profitable.
Earnings and Revenue History
Cervus Equipment's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cervus Equipment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CERV Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,139.03 -8.62 151.25
2019-09-30 1,179.73 5.26 161.39
2019-06-30 1,255.15 19.12 163.24
2019-03-31 1,336.13 24.01 164.51
2018-12-31 1,350.04 24.78 163.16
2018-09-30 1,322.52 23.47 162.96
2018-06-30 1,290.11 20.75 163.86
2018-03-31 1,238.88 19.60 165.04
2017-12-31 1,221.29 19.92 164.56
2017-09-30 1,220.50 24.94 160.22
2017-06-30 1,195.10 26.23 157.57
2017-03-31 1,132.51 20.35 154.55
2016-12-31 1,109.94 23.71 151.60
2016-09-30 1,095.72 18.73 152.02
2016-06-30 1,095.78 11.90 154.83
2016-03-31 1,104.00 -22.79 160.58
2015-12-31 1,133.88 -27.42 166.63
2015-09-30 1,165.19 -25.32 183.06
2015-06-30 1,116.64 -21.52 179.12
2015-03-31 1,051.14 16.30 168.86
2014-12-31 979.61 18.36 157.68
2014-09-30 916.38 18.74 146.04
2014-06-30 879.58 19.68 137.01
2014-03-31 886.34 22.38 130.05
2013-12-31 861.14 23.09 122.37
2013-09-30 799.21 23.74 115.05
2013-06-30 783.82 23.71 110.73

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Cervus Equipment has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Cervus Equipment used its assets less efficiently than the CA Trade Distributors industry average last year based on Return on Assets.
  • It is difficult to establish if Cervus Equipment improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Cervus Equipment's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cervus Equipment has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cervus Equipment's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cervus Equipment's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cervus Equipment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cervus Equipment's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cervus Equipment's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cervus Equipment Company Filings, last reported 3 months ago.

TSX:CERV Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 227.14 225.54 7.95
2019-09-30 232.74 254.74 7.15
2019-06-30 237.89 262.97 10.26
2019-03-31 242.55 245.88 2.56
2018-12-31 243.70 196.70 6.11
2018-09-30 241.82 205.70 8.81
2018-06-30 232.30 231.38 1.93
2018-03-31 225.61 242.44 3.24
2017-12-31 225.25 168.87 14.50
2017-09-30 223.34 185.47 3.27
2017-06-30 219.33 175.66 12.16
2017-03-31 212.15 187.83 4.71
2016-12-31 213.84 157.37 14.54
2016-09-30 206.93 240.30 10.14
2016-06-30 196.07 287.28 8.16
2016-03-31 194.19 310.52 8.75
2015-12-31 193.29 307.16 11.96
2015-09-30 189.93 337.14 5.98
2015-06-30 188.99 369.78 11.57
2015-03-31 224.88 366.55 11.78
2014-12-31 229.49 314.45 18.79
2014-09-30 222.11 277.45 8.67
2014-06-30 217.80 212.59 24.75
2014-03-31 215.25 184.97 15.36
2013-12-31 218.42 150.63 14.68
2013-09-30 214.71 187.19 16.54
2013-06-30 210.22 196.73
  • Cervus Equipment's level of debt (99.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (137.3% vs 99.3% today).
  • Debt is not well covered by operating cash flow (12%, less than 20% of total debt).
  • Cervus Equipment is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Cervus Equipment's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cervus Equipment has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Cervus Equipment's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.78%
Current annual income from Cervus Equipment dividends. Estimated to be 6.78% next year.
If you bought CA$2,000 of Cervus Equipment shares you are expected to receive CA$136 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cervus Equipment's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.7%).
  • Cervus Equipment's dividend is below the markets top 25% of dividend payers in Canada (8.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CERV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Canada Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 4.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.4%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CERV Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.44 1.00
2020-12-31 0.44 1.00
2020-04-03
TSX:CERV Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-03-12 0.440 7.754
2019-12-12 0.440 5.340
2019-09-16 0.440 5.331
2019-06-14 0.440 4.130
2019-05-08 0.440 3.487
2018-12-14 0.400 3.033
2018-09-14 0.400 3.047
2018-06-14 0.400 2.808
2018-03-14 0.400 2.817
2017-12-14 0.280 1.919
2017-09-18 0.280 1.896
2017-06-14 0.280 2.284
2017-03-15 0.280 2.283
2016-12-14 0.280 1.868
2016-09-15 0.280 2.068
2016-06-14 0.280 2.437
2016-05-11 0.280 2.438
2015-12-16 0.850 7.081
2015-09-15 0.850 6.047
2015-06-15 0.850 5.819
2015-03-13 0.850 4.716
2014-12-18 0.840 4.340
2014-09-16 0.830 4.404
2014-06-13 0.820 3.897
2014-03-17 0.810 3.727
2013-12-18 0.800 3.362
2013-09-19 0.790 3.708
2013-06-18 0.780 3.942
2013-03-15 0.770 3.878
2012-12-17 0.760 3.937
2012-09-18 0.750 3.868
2012-06-15 0.740 3.841
2012-03-15 0.730 3.980
2011-12-16 0.720 4.424
2011-09-15 0.720 4.822
2011-06-16 0.720 4.421
2011-05-10 0.720 4.188
2010-12-15 0.720 4.465
2010-09-15 0.720 5.704
2010-06-15 0.720 6.784
2010-03-24 0.720 5.693
2010-03-15 0.720 5.129
2009-10-19 0.480 3.783
2009-09-15 0.720 7.644
2009-07-16 0.720 8.821

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Cervus Equipment's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Cervus Equipment's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cervus Equipment afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cervus Equipment has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Cervus Equipment's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Angela Lekatsas
COMPENSATION CA$347,224
AGE 57
TENURE AS CEO 0.9 years
CEO Bio

Ms. Angela S. Lekatsas, B. Comm., CA, CPA (Illinois) has been a Vice President and Treasurer of Agrium Inc. since 2011. Ms. Lekatsas serves as a President and Chief Executive Officer at Cervus Equipment Corporation since May 15, 2019. Ms. Lekatsas served as Controller of Agrium Inc. since September 29, 2005 and also served as its Chief Risk Officer. She was responsible for Corporate Reporting, Planning and Forecasting, General Accounting, Business Analysis and Support, Finance Projects, Compliance and North America Wholesale Accounting. She joined Agrium in 2003 as Manager, Corporate Reporting. Prior to Agrium, she had 16 years of public accounting experience. She served as a Senior Manager at Deloitte & Touche LLP in their Assurance and Advisory practice. She has been Director of Cervus Equipment Corporation since 2013. She served an Additional Director at Cervus Equipment Corporation since September 30, 2013. She holds a Bachelor of Commerce Degree from the University of Saskatchewan as well as both Chartered Accountant and Certified Public Accountant designations. Ms. Lekatsas holds the Institute of Corporate Directors ICD.D designation from the University of Toronto Rotman Directors Education Program.

CEO Compensation
  • Angela's compensation has increased whilst company is loss making.
  • Angela's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Cervus Equipment management team in years:

4
Average Tenure
57
Average Age
  • The tenure for the Cervus Equipment management team is about average.
Management Team

Angela Lekatsas

TITLE
President
COMPENSATION
CA$347K
AGE
57
TENURE
0.9 yrs

Adam Lowther

TITLE
Chief Financial Officer
COMPENSATION
CA$308K
AGE
36
TENURE
2.3 yrs

Fred Hnatiw

TITLE
Vice President of Operations
COMPENSATION
CA$330K
AGE
58
TENURE
5.8 yrs

Stella Cosby

TITLE
Vice President of People
COMPENSATION
CA$262K
AGE
61
TENURE
5.8 yrs

Cal Johnson

TITLE
Vice President of Operations - Agriculture Canada
COMPENSATION
CA$873K
AGE
51
TENURE
8 yrs

Scott Johnston

TITLE
Vice President of Agriculture Canada
COMPENSATION
CA$211K
AGE
62

Devin Mylrea

TITLE
Corporate Counsel & Corporate Secretary
AGE
52
TENURE
2 yrs

Mark Bradley

TITLE
Managing Director
COMPENSATION
CA$239K
Board of Directors Tenure

Average tenure and age of the Cervus Equipment board of directors in years:

7.6
Average Tenure
63
Average Age
  • The tenure for the Cervus Equipment board of directors is about average.
Board of Directors

Peter Lacey

TITLE
Independent Chairman of the Board
COMPENSATION
CA$208K
AGE
63
TENURE
8 yrs

Angela Lekatsas

TITLE
President
COMPENSATION
CA$347K
AGE
57
TENURE
7.3 yrs

Larry Benke

TITLE
Independent Director
COMPENSATION
CA$78K
AGE
67
TENURE
8 yrs

Dan Sobic

TITLE
Independent Director
COMPENSATION
CA$69K
AGE
65
TENURE
2.6 yrs

Wendy Henkelman

TITLE
Independent Director
COMPENSATION
CA$22K
AGE
54
TENURE
0.6 yrs

Don Bell

TITLE
Lead Director
COMPENSATION
CA$86K
AGE
63

Steven Collicutt

TITLE
Independent Director
COMPENSATION
CA$80K
AGE
59
TENURE
17.3 yrs
Who owns this company?
Recent Insider Trading
  • Cervus Equipment individual insiders have sold more shares than they have bought in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
27. Mar 20 Sell Fred Hnatiw Individual 24. Mar 20 24. Mar 20 -2,656 CA$5.75 CA$-15,272
19. Mar 20 Buy Daniel Sobic Individual 19. Mar 20 19. Mar 20 1,000 CA$5.35 CA$5,231
19. Nov 19 Buy Larry Benke Individual 19. Nov 19 19. Nov 19 3,000 CA$8.16 CA$24,185
19. Nov 19 Buy Daniel Sobic Individual 18. Nov 19 18. Nov 19 300 CA$7.78 CA$2,335
12. Nov 19 Buy Adam Lowther Individual 11. Nov 19 11. Nov 19 1,580 CA$7.70 CA$12,135
12. Nov 19 Buy Daniel Sobic Individual 11. Nov 19 11. Nov 19 300 CA$7.69 CA$2,300
12. Nov 19 Buy Angela Lekatsas Individual 12. Nov 19 12. Nov 19 6,500 CA$7.70 CA$50,073
30. Sep 19 Buy Daniel Sobic Individual 30. Sep 19 30. Sep 19 300 CA$8.58 CA$2,574
07. Jun 19 Buy Daniel Sobic Individual 07. Jun 19 07. Jun 19 500 CA$12.12 CA$6,058
04. Jun 19 Buy Peter Lacey Individual 04. Jun 19 04. Jun 19 32,011 CA$11.73 CA$375,329
03. Jun 19 Buy Peter Lacey Individual 30. May 19 30. May 19 1,500 CA$12.38 CA$18,570
30. May 19 Buy Peter Lacey Individual 28. May 19 29. May 19 16,011 CA$12.79 CA$204,174
28. May 19 Buy Daniel Sobic Individual 21. May 19 24. May 19 1,500 CA$13.18 CA$19,588
15. May 19 Buy Angela Lekatsas Individual 15. May 19 15. May 19 3,300 CA$12.98 CA$42,820
14. May 19 Buy Angela Lekatsas Individual 14. May 19 14. May 19 6,700 CA$13.00 CA$86,753
X
Management checks
We assess Cervus Equipment's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cervus Equipment has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Cervus Equipment (TSE:CERV) Has A Mountain Of Debt

Check out our latest analysis for Cervus Equipment What Is Cervus Equipment's Net Debt? … So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. … Given our concerns about Cervus Equipment's debt levels, it seems only prudent to check if insiders have been ditching the stock.

Simply Wall St -

Is Cervus Equipment Corporation (TSE:CERV) A Good Dividend Stock?

TSX:CERV Historical Dividend Yield, August 22nd 2019 Payout ratios Dividends are usually paid out of company earnings. … Last year, Cervus Equipment paid a dividend while reporting negative free cash flow. … Conclusion To summarise, shareholders should always check that Cervus Equipment's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Cervus Equipment Corporation (TSE:CERV): Can Growth Justify Its August Share Price?

Looking at Cervus Equipment Corporation’s (TSE:CERV) fundamentals some investors are wondering if its last closing price of CA$10.56 represents a good value for money for this high growth stock. … But, seeing as Cervus Equipment is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … A PE ratio of 7.19x and expected year-on-year earnings growth of 23% give Cervus Equipment an extremely low PEG ratio of 0.32x.

Simply Wall St -

Investors Who Bought Cervus Equipment (TSE:CERV) Shares Five Years Ago Are Now Down 49%

So we wouldn't blame long term Cervus Equipment Corporation (TSE:CERV) shareholders for doubting their decision to hold, with the stock down 49% over a half decade. … A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity. … As it happens, Cervus Equipment's TSR for the last 5 years was -40%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Is There An Opportunity With Cervus Equipment Corporation's (TSE:CERV) 32% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Cervus Equipment Corporation (TSE:CERV) by projecting its future cash flows and then discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$27.0m CA$27.9m CA$28.7m CA$29.4m CA$30.1m CA$30.8m CA$31.4m CA$32.1m CA$32.8m CA$33.4m Growth Rate Estimate Source Analyst x1 Est @ 3.22% Est @ 2.84% Est @ 2.57% Est @ 2.38% Est @ 2.25% Est @ 2.16% Est @ 2.1% Est @ 2.05% Est @ 2.02% Present Value (CA$, Millions) Discounted @ 12.6% CA$24.0 CA$22.0 CA$20.1 CA$18.3 CA$16.6 CA$15.1 CA$13.7 CA$12.4 CA$11.3 CA$10.2 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$163.6m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 12.6%.

Simply Wall St -

Why Cervus Equipment Corporation (TSE:CERV) Could Be Your Next Investment

Cervus Equipment Corporation (TSE:CERV) is a company with exceptional fundamental characteristics. … In the case of CERV, it is a company with a strong history of performance, trading at a discount. … CERV's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish.

Simply Wall St -

Does Market Volatility Impact Cervus Equipment Corporation's (TSE:CERV) Share Price?

The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … This is above 1, so historically its share price has been influenced by the broader volatility of the stock market.

Simply Wall St -

With EPS Growth And More, Cervus Equipment (TSE:CERV) Is Interesting

Cervus Equipment's earnings per share have taken off like a rocket aimed right at the moon. … The strong EPS growth suggests Cervus Equipment may be at an inflection point. … The good news is that Cervus Equipment is not the only growth stock with insider buying.

Simply Wall St -

Do You Like Cervus Equipment Corporation (TSE:CERV) At This P/E Ratio?

See our latest analysis for Cervus Equipment How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Cervus Equipment: P/E of 8.13 = CA$12.5 ÷ CA$1.54 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Probably the most important factor in determining what P/E a company trades on is the earnings growth.

Simply Wall St -

Does Cervus Equipment Corporation's (TSE:CERV) 12% Earnings Growth Make It An Outperformer?

Examining Cervus Equipment Corporation's (TSE:CERV) past track record of performance is an insightful exercise for investors. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 20%, indicating the rate at which CERV is growing has slowed down. … I recommend you continue to research Cervus Equipment to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for CERV’s future growth?

Simply Wall St -

Company Info

Description

Cervus Equipment Corporation provides equipment solutions to customers in agriculture, transportation, and industrial markets in Canada, Australia, and New Zealand. It operates through three segments: Agricultural, Transportation, and Industrial Equipment. The company provides riding mower, gator utility vehicles, zero-turn mowers, tractors, commercial mowers, as well as cutters and shredders and front-end loaders. It also offers agricultural equipment, parts, and attachments, such as balers, tractors, mowers conditioners, nutrient application, combines, tillage, air seeding, self-propelled sprayer, self-propelled windrowers, self-propelled forage harvesters, and precision agriculture. In addition, the company offers forklifts, pallet jacks, telehandlers, and aerial work platforms. Further, it also provides transportation equipment, which includes on highway, medium duty, alternative fuel, and vocational trucks; engines; axles; and new technology tucks. Additionally, it also offers used equipment. As of December 31, 2019, the company offers 36 John Deere dealership locations with 15 in Alberta, 5 in Saskatchewan, 1 in British Columbia, 9 in New Zealand, and 6 in Australia under Agricultural segment; 19 dealerships with 4 Peterbilt truck dealerships and 1 collision centre operating in Saskatchewan, and 12 Peterbilt truck dealerships and 2 parts operating in Ontario under Transportation segment; and 8 material handling and forklift equipment dealership locations with 5 operating in Alberta, 2 in Saskatchewan and 1 in Manitoba under the Industrial segment. The company offers its products under John Deere, Clark, Sellick, Doosan, JLG, Peterbilt, and Baumann brands. Cervus Equipment Corporation was founded in 1982 and is headquartered in Calgary, Canada.

Details
Name: Cervus Equipment Corporation
CERV
Exchange: TSX
Founded: 1982
CA$103,840,000
16,000,000
Website: http://www.cervusequipment.com
Address: Cervus Equipment Corporation
Harvest Hills Business Park,
5201 – 333 96 Avenue NE,
Calgary,
Alberta, T3K 0S3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CERV Common Stock The Toronto Stock Exchange CA CAD 22. May 2003
OTCPK CSQP.F Common Stock Pink Sheets LLC US USD 22. May 2003
DB VCE Common Stock Deutsche Boerse AG DE EUR 22. May 2003
Number of employees
Current staff
Staff numbers
1,555
Cervus Equipment employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 03:44
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/17
Last earnings filing: 2020/03/12
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.