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Strongco

TSX:SQP
Snowflake Description

Fair value with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SQP
TSX
CA$42M
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company description

Strongco Corporation sells, rents, and services new and used equipment to the construction, infrastructure, mining, oil and gas, utilities, municipalities, waste management, and forestry sectors in Canada and in the United States. The last earnings update was 141 days ago. More info.


Add to Portfolio Compare Print
  • Strongco has significant price volatility in the past 3 months.
SQP Share Price and Events
7 Day Returns
1%
TSX:SQP
-10.9%
CA Trade Distributors
-11%
CA Market
1 Year Returns
101.9%
TSX:SQP
-26%
CA Trade Distributors
-25.9%
CA Market
SQP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Strongco (SQP) 1% 0.3% 70.3% 101.9% 125% 28.6%
CA Trade Distributors -10.9% -27.5% -28.9% -26% -20.3% -10%
CA Market -11% -28.7% -26.3% -25.9% -22.3% -16.7%
1 Year Return vs Industry and Market
  • SQP outperformed the Trade Distributors industry which returned -26% over the past year.
  • SQP outperformed the Market in Canada which returned -25.9% over the past year.
Price Volatility
SQP
Industry
5yr Volatility vs Market

SQP Value

 Is Strongco 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 Strongco 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 Strongco.

TSX:SQP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 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:SQP
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))
= 0.87 (1 + (1- 26.5%) (610.43%))
3.528
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:SQP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Strongco 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:SQP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 12.32%)
2020 11.38 Est @ 29.74% 10.13
2021 13.80 Est @ 21.25% 10.94
2022 15.91 Est @ 15.31% 11.23
2023 17.68 Est @ 11.15% 11.11
2024 19.14 Est @ 8.23% 10.71
2025 20.33 Est @ 6.2% 10.12
2026 21.30 Est @ 4.77% 9.44
2027 22.10 Est @ 3.77% 8.72
2028 22.78 Est @ 3.07% 8.01
2029 23.37 Est @ 2.58% 7.31
Present value of next 10 years cash flows CA$97.00
TSX:SQP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$23.37 × (1 + 1.44%) ÷ (12.32% – 1.44%)
CA$217.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$217.85 ÷ (1 + 12.32%)10
CA$68.17
TSX:SQP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$97.00 + CA$68.17
CA$165.17
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$165.17 / 13.37
CA$12.35
TSX:SQP Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$12.35
Current discount Discount to share price of CA$3.15
= -1 x (CA$3.15 - CA$12.35) / CA$12.35
74.5%

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

Current Discount
Amount off the current price Strongco is available for.
Intrinsic value
>50%
Share price is CA$3.15 vs Future cash flow value of CA$12.35
Current Discount Checks
For Strongco to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Strongco's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Strongco'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 Strongco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Strongco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SQP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CAD CA$0.35
TSX:SQP Share Price ** TSX (2020-03-18) in CAD CA$3.15
Canada Trade Distributors Industry PE Ratio Median Figure of 11 Publicly-Listed Trade Distributors Companies 8.43x
Canada Market PE Ratio Median Figure of 503 Publicly-Listed Companies 11.01x

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

** Primary Listing of Strongco.

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

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

= 3.15 ÷ 0.35

8.88x

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

  • Strongco is overvalued based on earnings compared to the CA Trade Distributors industry average.
  • Strongco is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Strongco's expected growth come at a high price?
Raw Data
TSX:SQP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
Canada Trade Distributors Industry PEG Ratio Median Figure of 5 Publicly-Listed Trade Distributors Companies 0.79x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.7x

*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 Strongco, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Strongco's assets?
Raw Data
TSX:SQP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CAD CA$2.32
TSX:SQP Share Price * TSX (2020-03-18) in CAD CA$3.15
Canada Trade Distributors Industry PB Ratio Median Figure of 18 Publicly-Listed Trade Distributors Companies 0.69x
Canada Market PB Ratio Median Figure of 2,356 Publicly-Listed Companies 0.99x
TSX:SQP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 3.15 ÷ 2.32

1.36x

* Primary Listing of Strongco.

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

  • Strongco is overvalued based on assets compared to the CA Trade Distributors industry average.
X
Value checks
We assess Strongco'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. Strongco 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.

SQP Future Performance

 How is Strongco expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

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
-1.5%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Strongco expected to grow at an attractive rate?
  • Unable to compare Strongco's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Strongco's earnings growth to the Canada market average as no estimate data is available.
  • Strongco's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SQP Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SQP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts -1.5%
Canada Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 14.4%
Canada Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 8.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 4.3%

*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:SQP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SQP Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 399 1
2020-03-19
2019-12-31 409 1
TSX:SQP Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-09-30 405 9 5
2019-06-30 406 11 0
2019-03-31 415 7 0
2018-12-31 412 4 0
2018-09-30 408 2 -2
2018-06-30 397 2 1
2018-03-31 375 0 -1
2017-12-31 376 3 -2
2017-09-30 360 5 -7
2017-06-30 359 1 -34
2017-03-31 360 -9 -39
2016-12-31 361 -3 -38

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Strongco is high growth as no earnings estimate data is available.
  • Strongco's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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:SQP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Strongco Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SQP Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2020-03-19
2019-12-31
TSX:SQP Past Financials Data
Date (Data in CAD Millions) EPS *
2019-09-30 0.35
2019-06-30 0.01
2019-03-31 0.01
2018-12-31 0.01
2018-09-30 -0.12
2018-06-30 0.09
2018-03-31 -0.07
2017-12-31 -0.17
2017-09-30 -0.56
2017-06-30 -2.55
2017-03-31 -2.92
2016-12-31 -2.90

*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 Strongco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Strongco'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.
Strongco has a total score of 0/6, 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.

SQP Past Performance

  How has Strongco 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 Strongco'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.
  • Strongco's year on year earnings growth rate has been positive over the past 5 years.
  • Strongco has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Strongco has become profitable in the last year making it difficult to compare the CA Trade Distributors industry average.
Earnings and Revenue History
Strongco'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 Strongco Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SQP Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 404.88 4.74 57.95
2019-06-30 405.82 0.18 59.03
2019-03-31 415.15 0.16 60.34
2018-12-31 412.11 0.16 61.53
2018-09-30 407.63 -1.53 63.34
2018-06-30 396.51 1.15 63.80
2018-03-31 375.20 -0.98 63.69
2017-12-31 376.14 -2.23 64.43
2017-09-30 359.71 -7.38 64.03
2017-06-30 358.52 -33.70 65.40
2017-03-31 360.02 -38.58 66.04
2016-12-31 361.30 -38.35 66.01
2016-09-30 381.51 -37.76 69.21
2016-06-30 382.19 -14.23 69.08
2016-03-31 363.61 -9.02 65.38
2015-12-31 385.00 -8.94 68.12
2015-09-30 412.39 -6.77 69.03
2015-06-30 454.26 1.26 74.09
2015-03-31 506.60 3.11 80.42
2014-12-31 498.33 0.93 81.27
2014-09-30 485.89 4.50 80.88
2014-06-30 488.36 0.99 79.17
2014-03-31 492.57 2.18 78.67
2013-12-31 485.72 3.00 77.73
2013-09-30 485.27 3.19 75.08
2013-06-30 472.81 3.58 72.37
2013-03-31 464.89 3.76 72.48

*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.
  • Strongco has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Strongco used its assets less efficiently than the CA Trade Distributors industry average last year based on Return on Assets.
  • Strongco has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Strongco'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.
Strongco has a total score of 2/6, 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.

SQP Health

 How is Strongco'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 Strongco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Strongco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Strongco's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Strongco'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 1.4x 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 Strongco Company Filings, last reported 5 months ago.

TSX:SQP Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 30.97 203.21
2019-06-30 28.82 196.02
2019-03-31 27.11 175.43
2018-12-31 25.71 171.64
2018-09-30 26.68 174.11
2018-06-30 28.79 165.10
2018-03-31 27.12 161.21
2017-12-31 26.97 160.02
2017-09-30 27.87 159.36
2017-06-30 27.62 147.60
2017-03-31 28.09 133.18
2016-12-31 29.18 133.16
2016-09-30 31.23 160.25
2016-06-30 64.85 215.25 0.79
2016-03-31 69.60 199.86 0.66
2015-12-31 71.61 235.11 0.64
2015-09-30 72.77 262.12 0.02
2015-06-30 73.47 244.55 0.01
2015-03-31 72.96 233.84 0.01
2014-12-31 72.08 241.44 0.06
2014-09-30 75.72 267.86 0.05
2014-06-30 72.08 278.04 0.95
2014-03-31 70.78 288.09 0.29
2013-12-31 73.13 259.50 0.06
2013-09-30 69.67 285.50 0.33
2013-06-30 67.81 288.26 0.33
2013-03-31 62.88 272.18 0.01
  • Strongco's level of debt (656.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (353.5% vs 656.2% today).
  • Debt is not well covered by operating cash flow (4.6%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Strongco'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. Strongco has a total score of 2/6, 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.

SQP Dividends

 What is Strongco'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
0%
Current annual income from Strongco dividends.
If you bought CA$2,000 of Strongco shares you are expected to receive CA$0 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?
  • Unable to evaluate Strongco's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Strongco's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:SQP 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 1 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 336 Stocks 4.9%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.4%
Canada Bottom 25% Dividend Yield 25th Percentile 2.6%
Canada Top 25% Dividend Yield 75th Percentile 8.5%

Industry and Market average data is calculated daily.

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

TSX:SQP Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2020-03-19
2019-12-31
TSX:SQP Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2010-08-10 0.000 0.000
2010-05-14 0.000 0.000
2010-04-01 0.000 0.000
2010-03-26 0.000 0.000
2009-10-30 0.000 0.000
2009-08-10 0.000 0.000
2009-07-30 0.000 0.000
2009-04-30 0.000 0.000
2009-03-23 0.000 0.000

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

  • Unable to perform a dividend volatility check as Strongco has not reported any payouts.
  • Unable to verify if Strongco's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Strongco's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Strongco has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Strongco'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 Strongco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Strongco has a total score of 0/6, see the detailed checks below.


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

SQP Management

 What is the CEO of Strongco'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.
  • Strongco has no CEO, or we have no data on them.
Management Team Tenure

Average tenure of the Strongco management team in years:

4.2
Average Tenure
  • The tenure for the Strongco management team is about average.
Management Team

Robert Beutel

TITLE
Executive Chairman
COMPENSATION
CA$348K
AGE
59
TENURE
4.2 yrs

J. Wood

TITLE
VP, CFO & Corporate Secretary
COMPENSATION
CA$553K
TENURE
11.3 yrs

Oliver Nachevski

TITLE
VP & COO
COMPENSATION
CA$621K
TENURE
1.7 yrs
Board of Directors Tenure

Average tenure of the Strongco board of directors in years:

5.4
Average Tenure
  • The tenure for the Strongco board of directors is about average.
Board of Directors

Robert Beutel

TITLE
Executive Chairman
COMPENSATION
CA$348K
AGE
59

Ian Christopher Currie

TITLE
Independent Director
COMPENSATION
CA$65K
TENURE
9.8 yrs

Anne Brace

TITLE
Independent Director
COMPENSATION
CA$58K
TENURE
6.9 yrs

John Anhang

TITLE
Independent Director
COMPENSATION
CA$57K
AGE
58
TENURE
3.8 yrs

Eudora LeBlanc

TITLE
Independent Director
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
X
Management checks
We assess Strongco'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. Strongco 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.

SQP News

Simply Wall St News

What Kind Of Investor Owns Most Of Strongco Corporation (TSE:SQP)?

With a market capitalization of CA$20m, Strongco is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for Strongco TSX:SQP Ownership Summary, August 29th 2019 What Does The Institutional Ownership Tell Us About Strongco? … We can see that Strongco does have institutional investors; and they hold 6.8% of the stock.

Simply Wall St -

How Does Investing In Strongco Corporation (TSE:SQP) Impact The Volatility Of Your Portfolio?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Therefore, it's a bit surprising to see that this stock has a beta value so close to the overall market. … What this means for you: Strongco has a beta value quite close to that of the overall market.

Simply Wall St -

Why We Like Strongco Corporation’s (TSE:SQP) 16% Return On Capital Employed

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Strongco: 0.16 = CA$13m ÷ (CA$308m - CA$226m) (Based on the trailing twelve months to March 2019.) Therefore, Strongco has an ROCE of 16%. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. … The Bottom Line On Strongco's ROCE The ROCE would not look as appealing if the company had fewer current liabilities.

Simply Wall St -

Based On Its ROE, Is Strongco Corporation (TSE:SQP) A High Quality Stock?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Strongco: 0.6% = CA$163k ÷ CA$27m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

What Percentage Of Strongco Corporation (TSE:SQP) Shares Do Insiders Own?

Generally speaking, as a company grows, institutions will increase their ownership. … Conversely, insiders often decrease their ownership over time. … We can zoom in on the different ownership groups, to learn more about SQP

Simply Wall St -

Why You Should Like Strongco Corporation’s (TSE:SQP) ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Does The Strongco Corporation (TSE:SQP) Share Price Tend To Follow The Market?

If you're interested in Strongco Corporation (TSE:SQP), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility).

Simply Wall St -

At CA$2.24, Is It Time To Put Strongco Corporation (TSE:SQP) On Your Watch List?

received a lot of attention from a substantial price movement on the TSX over the last few months, increasing to CA$2.75 at one point, and dropping to the lows of CA$2.13. … A question to answer is whether Strongco's current trading price of CA$2.24 reflective of the actual value of the? … Let’s take a look at Strongco’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Shareholders Should Check The Ownership Structure Of Strongco Corporation (TSE:SQP)

The big shareholder groups in Strongco Corporation (TSE:SQP) have power over the company. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Will Strongco Corporation (TSE:SQP) Continue To Underperform Its Industry?

and want to begin learning the link between company’s fundamentals and stock market performance. … Strongco Corporation’s (TSE:SQP) most recent return on equity was a substandard 4.0% relative to its industry performance of 11.4% over the past year. … Though SQP's recent performance is underwhelming, it is useful to understand what ROE is made up of and how it should be interpreted.

Simply Wall St -

SQP Company Info

Description

Strongco Corporation sells, rents, and services new and used equipment to the construction, infrastructure, mining, oil and gas, utilities, municipalities, waste management, and forestry sectors in Canada and in the United States. The company offers attachments/accessories, backhoe loaders, compactors/tampers, crawler dozers, cranes, crushing and screening equipment, excavators, forestry equipment, haulers, hydraulic hammers, lift trucks, wheel and compact loaders, material handlers, motor graders, pavers/milling/road wideners, scrapers, skid steers, and pipe layers; and used equipment. It also provides parts; and in-field, in-shop, refurbishment, component rebuilding, scheduled maintenance, customer service agreement, extended warranty, equipment inspection, air conditioning, painting, hydraulic repair, fluid analysis, telematics, training, and hose manufacturing services, as well as software options. The company serves customers through a network of approximately 25 branches in Canada. Strongco Corporation is headquartered in Mississauga, Canada.

Details
Name: Strongco Corporation
SQP
Exchange: TSX
Founded:
CA$42,120,914
13,371,719
Website: http://www.strongco.com
Address: Strongco Corporation
1640 Enterprise Road,
Mississauga,
Ontario, L4W 4L4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SQP Common Shares The Toronto Stock Exchange CA CAD 12. Dec 1995
OTCPK STGC.F Common Shares Pink Sheets LLC US USD 12. Dec 1995
Number of employees
Current staff
Staff numbers
497
Strongco employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/19 01:33
End of day share price update: 2020/03/18 00:00
Last estimates confirmation: 2020/01/27
Last earnings filing: 2019/10/30
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


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.